IRS Distributes $800 M to Renewable Energy Projects

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http://www.renewableenergyaccess.com/rea/news/story?id=46714

The Internal Revenue Service (IRS) recently allocated $800 million in tax credit bonds to renewable and alternative energy projects throughout the U.S. More than 600 projects received Clean Renewable Energy Bonds (CREB), including 434 solar facilities, 112 wind facilities, 14 hydro power facilities and 13 open-loop biomass facilities.

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According to Timothy Jones in the IRS office of assistant chief counsel, with a conventional bond the issuer must pay interest to the bondholder. With a tax credit bond on the other hand, the federal government pays a tax credit to the bondholder in lieu of the issuer paying interest to the bondholder - and the bondholder can deduct the amount of the tax credit from their total income tax liability.

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Of the approved government projects, 401 are for solar facilities, 99 for wind facilities, 23 for landfill gas facilities, eight for hydropower facilities and one for an open loop biomass facility. Of the approved cooperative projects, 33 are for solar facilities, 13 for wind facilities, 13 for landfill gas facilities, 12 for open-loop biomass facilities, six for hydropower facilities and one for a refined coal production facility.

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However, there were 231 proposed projects in California, 67 in New Mexico, 64 in Minnesota, 41 in New Jersey, 38 in Montana, 27 in Colorado, 24 in Massachusetts, 13 in New York and 12 in Ohio.

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