26 U.S. Code § 54D - Qualified energy conservation bonds
(a) Qualified energy conservation bond
For purposes of this subchapter, the term “qualified energy conservation bond” means any bond issued as part of an issue if—
(1) 100 percent of the available project proceeds of such issue are to be used for one or more qualified conservation purposes,
(b) Reduced credit amount
(c) Limitation on amount of bonds designated
The maximum aggregate face amount of bonds which may be designated under subsection (a) by any issuer shall not exceed the limitation amount allocated to such issuer under subsection (e).
(d) National limitation on amount of bonds designated
There is a national qualified energy conservation bond limitation of $3,200,000,000.
(1) In general
The limitation applicable under subsection (d) shall be allocated by the Secretary among the States in proportion to the population of the States.
(2) Allocations to largest local governments
(A) In general
In the case of any State in which there is a large local government, each such local government shall be allocated a portion of such State’s allocation which bears the same ratio to the State’s allocation (determined without regard to this subparagraph) as the population of such large local government bears to the population of such State.
(B) Allocation of unused limitation to State
The amount allocated under this subsection to a large local government may be reallocated by such local government to the State in which such local government is located.
(3) Allocation to issuers; restriction on private activity bonds
Any allocation under this subsection to a State or large local government shall be allocated by such State or large local government to issuers within the State in a manner that results in not less than 70 percent of the allocation to such State or large local government being used to designate bonds which are not private activity bonds.
(4) Special rules for bonds to implement green community programs
In the case of any bond issued for the purpose of providing loans, grants, or other repayment mechanisms for capital expenditures to implement green community programs, such bond shall not be treated as a private activity bond for purposes of paragraph (3).
(f) Qualified conservation purpose
For purposes of this section—
(1) In general
The term “qualified conservation purpose” means any of the following:
(A) Capital expenditures incurred for purposes of—
(ii) implementing green community programs (including the use of loans, grants, or other repayment mechanisms to implement such programs),
(B) Expenditures with respect to research facilities, and research grants, to support research in—
(ii) technologies for the capture and sequestration of carbon dioxide produced through the use of fossil fuels,
(iv) automobile battery technologies and other technologies to reduce fossil fuel consumption in transportation, or
(C) Mass commuting facilities and related facilities that reduce the consumption of energy, including expenditures to reduce pollution from vehicles used for mass commuting.
(D) Demonstration projects designed to promote the commercialization of—
(1) In general
(2) Special rule for counties
In determining the population of any county for purposes of this section, any population of such county which is taken into account in determining the population of any municipality which is a large local government shall not be taken into account in determining the population of such county.
(h) Application to Indian tribal governments
An Indian tribal government shall be treated for purposes of this section in the same manner as a large local government, except that—
(1) an Indian tribal government shall be treated for purposes of subsection (e) as located within a State to the extent of so much of the population of such government as resides within such State, and
Source(Added Pub. L. 110–343, div. B, title III, § 301(a),Oct. 3, 2008, 122 Stat. 3841; amended Pub. L. 111–5, div. B, title I, § 1112,Feb. 17, 2009, 123 Stat. 322.)
References in Text
The date of the enactment of this section, referred to in subsec. (g)(1), is the date of enactment of Pub. L. 110–343, which was approved Oct. 3, 2008.
2009—Subsec. (d). Pub. L. 111–5, § 1112(a), substituted “$3,200,000,000” for “$800,000,000”.
Subsec. (e)(4). Pub. L. 111–5, § 1112(b)(2), added par. (4).
Subsec. (f)(1)(A)(ii). Pub. L. 111–5, § 1112(b)(1), inserted “(including the use of loans, grants, or other repayment mechanisms to implement such programs)” after “green community programs”.