PLR 200707015: Seventeen solar projects receive renewable energy bond allocations

Number

200707015

Outcome

Approved

Document type

Private Letter Ruling

IRS subject

Clean Renewable Energy Bonds

Topics

Income and deductions

Code sections

§ 54, § 45

Ruling dated

November 13, 2006

Publicly released

February 16, 2007

Source

View Official PDF

Apply this to your situation

This page covers one taxpayer's ruling, issued in 2007, which can't be cited as precedent. Ask about your situation and see what the current Code and IRS guidance say, with citations.

Not precedent. Under 26 U.S.C. § 6110(k)(3), this written determination may not be used or cited as precedent. It resolved one taxpayer's situation on its specific facts, and identifying details were redacted by the IRS before release. The official IRS release (linked on this page as a PDF) is the authoritative source.

About this page: The plain-English summary and ruling snapshot below were written by Ezel based on the official IRS release. The full text is the IRS's own document.

View official IRS release (PDF)

Plain-English summary

An applicant requested Clean Renewable Energy Bond authority for seventeen solar energy facilities. The IRS found the projects listed in Appendix A qualified under IRC § 54 and would be owned by qualified borrowers. It allocated bond authority in the redacted amounts shown in the appendix. The bonds had to be issued by December 31, 2007, and satisfy the applicable CREB requirements, including restrictions on reimbursing earlier capital expenditures. The allocation did not establish eligibility for the separate renewable electricity production credit under § 45.

Ruling snapshot

Question: Could the applicant receive CREB authority for seventeen solar energy facilities?
Outcome: Approved in the amounts listed in Appendix A, subject to CREB requirements and the December 31, 2007 issuance deadline.
Key authorities: IRC §§ 54(f)(2), 54(d)(2)(C), and 45; Notices 2005-98 and 2006-7.

Full text (IRS public release)

Internal Revenue Service
Department of the Treasury
Washington, DC 20224
Number: 200707015
Third Party Communication: None
Release Date: 2/16/2007
Date of Communication: Not Applicable
Index Number: 54.00-00
Person To Contact:

- -----------------------, ID No. -------------

                                                      Telephone Number:

---------------------------------------------------- ---------------------

                                                      Refer Reply To:

                                                      CC:TEGE:EOEG:TEB

                                                      PRESP-142830-06
                                                      Date:
                                                      November 13, 2006
     -

Dear -------------:

Pursuant to section 54(f)(2) of the Internal Revenue Code (the “Code”) and Notice 2005-98, 2005-52 I.R.B. 1211, and after review of your application submitted on April 14, 2006, including supplements thereto, we have determined that the projects described in Appendix A attached hereto are qualified for purposes of section 54 and will be owned by one or more qualified borrowers. We allocate authority to -----------------
-------------------------------------------------------------------------------------- (the Issuer), a qualified issuer under section 54, to issue up to $--------------- of Clean Renewable Energy Bonds (CREBs). Bonds issued pursuant to this allocation must be designated by the Issuer as bonds for purposes of section 54 for the projects described in Appendix A up to the amount allocated for each project described in Appendix A.

Bonds so designated must be issued on or before December 31, 2007. Please be aware that in order for bonds to be CREBs, the applicable requirements of the Code, including without limitation section 54, Notice 2005-98, and Notice 2006-7, 2006-10 I.R.B. 559, must be met. Please note that CREB proceeds may be used to reimburse capital expenditures paid by qualified borrowers for qualified projects only if the provisions of section 54(d)(2)(C) are met.

If you have any questions with respect to this allocation, please contact ---------------------
---------or -----------------------------of the Office of Division Counsel/Associate Chief Counsel Tax-Exempt and Government Entities on ---------------------(not a toll-free call).

Except as expressly provided herein, no opinion is expressed or implied concerning the tax consequences of any aspect of any transaction or item discussed or referenced in this letter.
PRESP-142830-06
2

For purposes of the renewable electricity production credit under section 45 of the Code, no inference may be drawn from this allocation that any project listed in Appendix A is a qualified facility or that electricity to be produced at such project(s) is electricity from a qualified energy resource at a qualified facility within the meaning of section 45.

This determination is directed only to the applicant named above. Section 6110(k)(3) of the Code provides that it may not be used or cited as precedent.

A copy of this letter must be attached to any Form 8038-G, Information Return for Tax- Exempt Governmental Obligations, filed for bonds issued pursuant to this allocation.

The allocation contained in this letter is based upon information and representations submitted by the applicant for the CREB allocation and accompanied by a penalty of perjury statement executed by an appropriate party. While this office has not verified any of the material submitted in support of the application for an allocation, it is subject to verification on examination.

Sincerely,
Assistant Chief Counsel, (Exempt
Organizations/Employment Tax/Government
Entities)
(Tax Exempt & Government Entities)

By: Timothy L. Jones
Senior Counsel
Tax-Exempt Bonds Branch
PRESP-142830-06
3

APPENDIX A

 Borrower Name                        Project        Project Location             Amount

Type
Allocated
1 ---------------------------------- Solar -------------------------- $--------- ---------------------------------- energy ------------------ ------------------------------ facility 2 ---------------------------------- Solar -------------------------- $----------- ---------------------------------- energy -------------------- ------------------------------ facility 3 ---------------------------------- Solar -------------------------- $----------- ---------------------------------- energy --------------------------
------------------------------ facility ---------------------

4 ---------------------------------- ---------------------------------- ------------------------------ 5 ---------------------------------- ---------------------------------- ------------------------------ 6 ---------------------------------- ---------------------------------- ------------------------------ 7 ---------------------------------- ---------------------------------- ------------------------------ 8 ---------------------------------- ---------------------------------- ------------------------------ 9 ---------------------------------- ---------------------------------- ------------------------------ 10 ---------------------------------- ---------------------------------- ------------------------------ Solar -------------------------- $-----------
energy -------------------
facility
Solar -------------------------- $-----------
energy -------------
facility
Solar -------------------------- $-----------
energy -----------------------
facility
Solar -------------------------- $-----------
energy --------------------
facility
Solar -------------------------- $-----------
energy -------------------
facility
Solar -------------------------- $-----------
energy ----------------------
facility
Solar -------------------------- $-----------
energy --------------------------
facility ----

11 ---------------------------------- Solar -------------------------- $-----------
---------------------------------- energy ------------------------
------------------------------ facility
12 ---------------------------------- Solar -------------------------- $-----------
---------------------------------- energy --------------
------------------------------ facility
13 ---------------------------------- Solar -------------------------- $-----------
PRESP-142830-06
4

---------------------------------- energy --------------------------
------------------------------ facility ---------

14 ---------------------------------- Solar -------------------------- $-----------
---------------------------------- energy ------------------------
------------------------------ facility
15 ---------------------------------- Solar -------------------------- $-------------
---------------------------------- energy ---------------------
------------------------------ facility
16 ---------------------------------- Solar -------------------------- $-------------
---------------------------------- energy --------------------------
------------------------------ facility --------------

17 ---------------------------------- Solar -------------------------- $-------------
---------------------------------- energy -----------------
------------------------------ facility
Total
$-------------------

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