This summary information is available as a Microsoft Word doc format of    Municipal-Finance-Bond-Tax-Opportunities-ARRTA-ARR  or PDF document pdf format of    Municipal-Finance-Bond-Tax-Opportunities.pdf  .

Common Questions and Answers



Who can issue these bonds?

Governmental body; public power provider; cooperative electric company. Applications for funding must be made directly to US Treasury

What can they be used for?

Qualified renewable energy facilities; wind; closed look biomass; geothermal or solar; small irrigation power facility; land fill gas facility; trash combustion facility; qualified hydropower facility; marine and hydrokinetic renewable energy facility

How are they subsidized by the feds?

CREBs are taxable, with tax credit payable by US Treasury to investor. Maximum maturity and credit rate are determined by US Treasury on date of sale

What are the benefits?

0% interest cost

Are there special reporting requirements?

Same information requirements as tax-exempt state or local government bonds

How long will these bonds be available?

CREBs introduced in 2005; presumption is that it will continue indefinitely

Is there a cap?

Yes. National allocation increased to $2.4 billion in both FY09 and FY10, with the following each getting one-third: state and local governments, public power projects, electric coops

Where can I find more information?

Section 1111 of ARRTA; Guidance issued 4/3/2009. US Treasury website http://www.irs.gov/newsroom/article/0,,id=206044,00.html

What else should I know?

Check back with mass.gov/recovery for updates

Information provided by the Executive Office for Administration and Finance