Select a locationselect a location

Legal Alerts

Search Legal Alerts
Search by date
Choose From Date
Choose To Date
SearchClear

Legal Alert: IRS Announces $281 Million Available Under New CREBs Program

February 6, 2015

On February 3, the Internal Revenue Service (IRS) released Notice 2015-12 (the Notice) which solicited applications for a third round of allocations of volume cap for new clean renewable energy bonds (New CREBs) under Section 54C of the Internal Revenue Code.

The IRS has identified a volume cap of $280,778,469 that is available to fund projects for cooperative electric companies. Cooperative electric companies may begin submitting applications under the Notice on March 5, 2015.

The requirements for New CREBs under Section 54C of the Code remain substantially similar to the allocations issued under the prior notice; however, a few notable differences include:

  • Allocations under the Notice will be awarded on a first-come, first-served basis by order of submission date (rather than based on the relative size of the project).
  • The maximum allocation available to any cooperative electric company is the greater of (i) 20% of the volume cap remaining for all cooperative electric companies as of the first day of the applicable period, or (ii) $40 million. The IRS will update the remaining volume cap for each period noted in (i) above approximately every 60 days and will post the updated amounts on its website. An application must state an amount within the maximum allocation to be considered complete.
  • The New CREBs must be issued within 180 days from the date of the allocation letter. This is a significantly shorter time period than the three-year issuance window under the prior notice. Allocations that are not utilized within the 180-day window will be treated as forfeited and will revert to the IRS for reallocation.

Given that the IRS will award allocations based on the time an application is submitted, cooperative electric companies that expect to seek financing for eligible projects through the issuance of New CREBs should begin analyzing their eligibility immediately, in order to submit a volume cap application as close to March 5, 2015, as possible.

The full text of the Notice, which includes an application form and general eligibility requirements, is available from the IRS at http://www.irs.gov/pub/irs-drop/n-15-12.pdf.

If you have any questions about this Legal Alert, please feel free to contact any of the attorneys listed under 'Related People/Contributors' or the Sutherland attorney with whom you regularly work.

Related People/Contributors

Our Story

Eversheds Sutherland is an international law firm helping the Fortune 100, industry leaders, sector innovators and business entrepreneurs solve their biggest challenges and reach their business goals. Dedicated to unfaltering excellence in client service, we are known for our business savvy and industry intelligence, providing creative and custom solutions for each of our clients. Industry and business experience makes the difference for our clients.

click to watch Videocast: FINRA’s 2016 Disciplinary Program:  “YUUUGE” Fines May Propel 2016 to Record-Setting Year
Videocast: FINRA’s 2016 Disciplinary Program:  “YUUUGE” Fines May Propel 2016 to Record-Setting Year
Washington, DC
Adam C. Pollet, Associate
Washington, DC
© 2017 Eversheds Sutherland (US) LLP
MYBRIEFCASE
Add this page to MYBRIEFCASE
Add Page to MYBRIEFCASE
News/Commentary - Legal Alert: IRS Announces $281 Million Available Under New CREBs Program
Current MYBRIEFCASE Pages
Save ChangesDownload MYBRIEFCASEClear All