ENERGY

Qualified Energy Conservation Bonds

Department & Agency:

Department of Treasury, Internal Revenue Service

Agency Contact:

Internal Revenue Service
http://www.irs.gov

Stimulus Funding:

Section 1112 of the Act authorizes $2.4 billion in qualified energy conservation bonds to finance state, municipal and tribal government programs designed to reduce greenhouse gas emissions. 

Eligibility and Type:

Allocations of qualified energy conservation bonds will be made to states, with sub-allocations to large local governments. Indian tribal governments will be treated as large local governments for these purposes, without regard to population, and thus will receive a specific allocation. Qualified energy conversation bonds only may be issued by Indian tribal governments to the extent such bonds are issued for purposes that satisfy the present law requirements for tax-exempt bonds issued by Indian tribal governments (i.e. essential governmental functions and certain manufacturing purposes.

Program Description:

Purposes for which these bonds may be used include reducing energy consumption, research, education campaigns that promote energy efficiency, and certain demonstration projects.

General Provisions: Special rules are set forth for bonds to implement Green Community programs. In the case of any bond issued for the purposes of providing loans, grants, or other repayment mechanisms for capital expenditures to implement green community programs, such bonds shall not be treated as a private activity bond for purposes of determining whether the requirement that not less then 70 percent of allocation within a state or local government be used to designate bonds that are not private activity bonds (sec. 54D(e)(3)) has been satisfied.

Analysis:

See Tribal Bonds Alert: Tribal Bond Provisions Included in the Economic Stimulus Package

On March 18, NCAI hosted a webinar on the Recovery Act provisions for tribal financing. This live presentation discussed details about the Department of Treasury seeking tribal leader comments on how to allocate the $2 billion in tax-exempt economic development bonds were presented. To view the webinar, click on the link below.

http://www.indiancountryworks.org/webinars.cfm#financeoptions

Technical Assistance:

Information is not yet available.