Federal Funding Resources
Federal Funding Resources
Federal Funding Resources
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WasteAdvantage
The Advantage in the Waste Industry
Five PeT boTTles (plastic soda bottles) yield enough fiber for
one extra large T-shirt, one square food of carpet or enough fiber fill-tofill one ski jacket. (National Recycling Coalition)
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As Seen In
(CREBs) within Section 54 of the U.S. tax code. Unlike traditional bonds that pay interest, tax credit bonds pay the bondholders by providing a credit against their federal income tax. In effect, CREBs provide interest-free The Advantage in the Waste Industry financing for clean energy projects. The types of projects for which bonds can be issued include renewable energy projects using landfill gas, wind, biomass, geothermal, solar, municipal solid waste, small hydroelectric, marine and hydrokinetic. The Internal Revenue Service (IRS) has determined that facilities functionally related and subordinate to the generation facility itself are also eligible for CREB financing. Examples of these auxiliary components include transmission lines and interconnection upgrades. The Energy Improvement and Extension Act of 2008 directs the IRS to allocate the bonding authority equally among electric cooperatives, government entities and public power producers. Other changes for new CREBs are as follows: The federal tax credit is reduced to 70 percent of the interest payment The bond holder can transfer the tax credit to another party Taxpayers can carry forward unused credits into future years Bond proceeds must be used within three years or a request for an extension must be made Each year, the IRS solicits applications and releases guidance on how the program will operate (e.g., criteria for determining allocations). For more information, contact Zoran Stojanovic, Internal Revenue Service, at (202) 622-3980.
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2011 Waste Advantage Magazine, All Rights Reserved. Reprinted from Waste Advantage Magazine. Contents cannot be reprinted without permission from the publisher.
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