Common Questions and Answers
Who can issue these bonds?
State or local government or conduit issuer
What can they be used for?
Qualified conservation purpose, including projects to reduce energy consumption in publicly-owed buildings, implementing green community programs, commuting facilities to reduce energy consumption and pollution, demonstration projects and educational campaigns. 70% of allocation cannot be private activity. 100% of the portion that is private activity must be capital expenditures
How are they subsidized by the feds?
QECBs 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?
Presumption is that it will continue indefinitely
Is there a cap?
Yes. National allocation increased to $3.2 billion in both FY09 and FY10
Where can I find more information?
Section 1112 of ARRTA; Guidance issued 4/3/2009. US Treasury website http://www.irs.gov
What else should I know?
Check back with mass.gov/recovery for updates
Information provided by the Executive Office for Administration and Finance