Tax News

CCH (cch.taxgroup.com) reports:

  The IRS and Treasury are soliciting applications for allocations of the present total national bond volume limitation authority (volume cap) of $2.4 billion to issue new clean renewable energy bonds (New CREBs) under Code Sec. 54C(a). Applications for New CREB volume cap allocations must be filed August 4, 2009.

  Guidance is also provided on: (1) eligibility requirements that a project must meet to be considered for a volume cap allocation; (2) application requirements and the application form for requests for volume cap allocations; (3) the method that the IRS and the Treasury Department will use to allocate the volume cap; and (4) certain aspects of the applicable law and interim guidance in this area. Each application for an allocation of the New CREBs volume cap under Code Sec. 54C must be prepared and submitted in accordance with the guidance. In order for an application to comply, the application must be prepared in substantially the same form as that set forth in Appendix A to the guidance.

Required Declarations

  Each application submitted must include the following declaration signed and dated by an authorized official of the qualified issuer who has personal knowledge of the relevant facts and circumstances: "Under penalties of perjury, I declare that I have examined this document and, to the best of my knowledge and belief, all of the facts contained herein are true, correct, and complete."

Consent

  In order to provide the public with information on how the volume cap authorized by Congress has been allocated and to facilitate oversight of the CREB program, the IRS intends to publish the results of the allocation process. Each applicant must submit with the application a declaration consenting to the disclosure by the IRS of the name of the applicant (issuer), the name of the qualified renewable energy facility owner (if other than the issuer), the type and location of the qualified renewable energy facility that is the subject of the application, and the amount of the New CREBs volume cap allocation for such facility in the event the facility receives an allocation.

Volume Cap Allocations

  The New CREB volume cap under Code Sec. 54C will be allocated for qualified projects for which applications meeting the requirements have been filed with the IRS on or before the application deadline. All related projects will be treated as a single project.

Insubstantial Deviations

  Generally, any allocation of CREBs or New CREBs volume cap is valid, for purposes of Code Sec. 54 or Code Sec. 54C, respectively, with respect to bonds issued pursuant to such allocation that are used to finance qualified renewable energy facilities described in the application. An allocation of CREBs or New CREBs is also valid notwithstanding insubstantial deviations with respect to the information submitted in the application.

Information Reporting

 
Code Sec. 54A(d)(3) requires issuers of New CREBs to submit information returns to the IRS similar to those required to be submitted under Code Sec. 149(e) for tax-exempt state or local governmental bonds.

Notice 2009-33, 2009FED ¶46,323

Other References:

 
Code Sec. 54C

  CCH Reference - 2009FED ¶4900.04

  Tax Research Consultant

  CCH Reference - TRC BUSEXP: 55,806