Combined Heat and Power Partnership
Qualified Energy Conservation Bonds (QECBs)
|Date Last Updated||1/28/2014|
|Incentive Administrator/Contact Office||U.S. Internal Revenue Service (IRS)|
|Incentive Initiation Date||4/7/2009|
|Incentive Size and Funding Source||The Energy Improvement and Extension Act of 2008 authorized the issuance of Qualified Energy Conservation Bonds (QECBs). QECBs were originally structured as tax credit bonds. However, the March 2010 HIRE Act (H.R. 2847 (Sec. 301)) changed QECBs from tax credit bonds to direct subsidy bonds similar to Build America Bonds (BABs). The QECB issuer pays the investor a taxable coupon and receives a rebate from the U.S. Treasury.|
A maximum of 30% of QECB allocations may be used for private activity purposes. There is no expiration date for QECBs and they can be issued as long as there is an available allocation.
|Eligible Recipient||Bonds may be used by state, local and tribal governments to finance certain types of energy projects. CHP systems that use municipal solid waste or biomass as feedstock appear to be eligible. Fuel cells and microturbines are listed technologies that are supported. However, QECBs can be used for a variety of purposes, including community energy conservation programs such as PACE; so CHP systems may have difficulty competing for funding.|
|Eligible Fuel||Does Not Specify|
|Eligible Project Size (MW)||Does Not Specify|
|Minimum Efficiency Required (%)||Does Not Specify|
|Other Selected Eligibility Criteria||The definition of "qualified energy conservation projects" contains elements relating to energy efficiency capital expenditures in public buildings that reduce energy consumption by at least 20%. Renewable energy facilities that are eligible for Clean Renewable Energy Bonds are also eligible for QECBs.|
|Other Incentive Details||QECBs are not subject to a U.S. Department of Treasury application and approval process. IRS Notice 2009-29 contains a list of the QECB allocations for each state and U.S. territory. Implementing allocations and reallocations most often, but not always, take place through State Energy Offices.|
DISCLAIMER: This information is for informational purposes only and does not represent formal guidance from the U.S. EPA Combined Heat and Power Partnership or approval from the U.S. Department of Treasury.