The picture flies in the face of popular opinion of a cold-hearted tax man, but the Internal Revenue Service has issued $406 million in Clean Renewable Energy Bonds – bonds that provide holders with a credit against their federal income tax.
In effect, the CREBs provide interest-free financing for certain renewable energy projects – 312 this year. The new allocations range from $15,000 to $30 million for 139 solar energy facilities, 102 wind power installations, 45 landfill gas facilities, 18 hydropower plants, five biomass power plants and three trash combustion facilities. Three of the biomass plants are “closed loop” facilities with dedicated sources of biomass crops.
All the projects will require other forms of financing as well as approval from authorities, so there is no guarantee that all the projects will be built. Most of the projects are located in California and Minnesota, with others in Alaska, Arizona, Colorado, Connecticut, Florida, Illinois, Iowa, Kentucky, Maine, Massachusetts, Michigan, Montana, Nebraska, Nevada, New Jersey, new York, North Dakota, Ohio, Pennsylvania, Rhode Island, South Carolina, Texas, Washington, West Virginia, Wisconsin and Wyoming.
For more information and a list of projects, visit the IRS Web site at www.IRS.gov/newsroom/article/0,,id=179016,00.html.