Who is eligible to use Qualified Energy Conservation Bonds, and what can this bond issuing authority be used for?
A. A broad array of “green” projects may be financed with Qualified Energy Conservation Bonds, which are a type of tax credit bond. At least 70 percent of each state’s allocation of the bond issuing authority created by this program must be used for governmental purposes; however, up to 30 percent may be used for private activity bonds, which are bonds that benefit businesses or individuals. Any type of state or local bond issuer, including tribal governments, may issue a bond under this program. Some of the eligible project types include: • Implementing green community programs. • Grants to support research in emerging energy technologies. • Rail and bus facilities. • Public education programs. • Renewable energy facilities. • Demonstration projects for emerging energy technology. Important Note: This program allocates the authority to issue bonds and sell tax credits to bond or tax credit investors in order to finance energy conservation projects; it is not a direct funding program t
