What are Qualified Energy Conservation Bonds?
• Qualified Energy Conservation Bonds are direct-payment subsidy taxable bonds or tax credit bonds that may be issued by state and local governments that allow an issuer to borrow for “qualified conservation purposes” at rates that may be significantly lower than traditional tax-exempt rates. What are the requirements for Qualified Energy Conservation Bonds? • 100 percent of the available project proceeds of the bond issue are to be used for one or more “qualified conservation purposes”, • The bonds are issued by a state or local government, and • The issuer designates the issue as Qualified Energy Conservation Bonds. What are “qualified conservation purposes”? • Capital expenditures incurred for: • purposes of reducing energy consumption in publicly owned buildings by at least 20 percent, • implementing green community programs, or • rural development involving the production of electricity from renewable energy resources. • Expenditures with respect to facilities or grants that suppo
