A clean renewable energy bond (CREB) is a type of tax incentive that is issued to sustainable energy and clean technology projects. The federal or state governments, as well as Indian tribal governments and clean energy bond lenders (such as Cobank and the National Rural Utilities Cooperative Finance Corporation, CFC) have the power to issue new clean renewable energy bonds to both individuals and corporations that install any type of renewable energy project, such as solar power systems.
First introduced in July 2005 with the passage of the Energy Tax Incentives Act of 2005, CREBs are tax credit bonds that allow bondholders to receive a sizable tax credit rather than receive an interest payment on the principle of the bond. For a bond to be valid, it has to be allocated by the Secretary of the Treasury, and 95 percent of its proceeds must be used on a renewable energy project. Additionally, it's important to note that a CREB tax credit must be used when it arises due to the fact that it is non-refundable. Simply put, CREB recipients will be in a “use it or lose it” position.
Although current clean technology legislation stipulates that CREBs will no longer be available after December 31, 2018, the Federal government continues to invest in clean energy bonds to entice more individuals and businesses to install solar power systems in the coming years. In fact, on Oct. 27, 2009, the Treasury Department announced that it was going to dole out $2.2 billion in clean renewable energy bonds to more than 800 public energy companies (and other legal bond distributors). These newest CREBs can cover up to 70 percent of all interest on the bond.
Given the complexities associated with clean renewable energy bond projects, those who are developing a solar power project in southern California should work with the seasoned professionals at Sullivan Solar Power to ensure they receive:
With more than 25 years of combined experience in the electrical contracting industry, the professionals at Sullivan Solar Power are highly proficient at designing and installing solar energy systems. We are familiar with the process and can help our clients fill out the necessary paperwork to ensure they receive the maximum possible financial benefits from investing in a sustainable energy source.
To schedule a free consultation with an experienced professional, contact our San Diego solar power contractors at Sullivan Solar Power today!