In July, 2005, Congress passed the Energy Tax Incentives Act of 2005 (the “Act”). Among a number of other tax incentives, the Act permits State and local governments, cooperative electric companies, clean renewable energy bond lenders and Indian tribal governments to issue “clean renewable energy bonds” (“CREBs”) to finance certain renewable energy and clean coal facilities. Part I of this article addresses the mechanics of issuing CREBs, including those projects that may be financed through the issuance of CREBs. Part II of this article discusses how the tax benefits of CREBs flow to investors. CREBs are a new form of tax credit bond in which interest on.
