Nebraska Allocation $18,502,000
Qualified Energy Conservation Bonds (QECBs)
were authorized by Congress in the 2008 Energy Improvement
and Extension Act. The original legislation authorized just
$800 million of QECBs nationwide.
In 2009, Congress increased to $3.2 billion
the funding for states, territories, large local governments,
and tribal governments to issue QECBs to finance renewable energy
and energy efficiency projects. The total allocation was divided
among the state and territorial issuers according to population.
As described above, the U.S. Congress allocated
QECB volume to the states and indicated that the states “shall”
suballocate a portion of these allocations to large local governments
and municipalities (population of 100,000 or more). These counties,
municipalities or tribes may issue bonds up to the amount of their
respective suballocations or waive their suballocations and return
them to the states.
Qualified Projects
QECBs may only be issued for qualified conservation
purposes as defined in section 54D of the U.S. Internal Revenue
Code. “Qualified conservation purposes” include
capital expenditures:
- To reduce energy consumption in publicly owned buildings
by at least 20%.
- To implement green community programs (including the use
of grants, loans, or other repayment mechanisms to implement
such programs).
- For rural development (including the production of renewable
energy).
- For certain renewable energy facilities (such as wind,
solar, and biomass).
- For certain mass commuting projects.
Overview
of Qualified Energy Conservation Bonds (opens in a new tab/window)
More resources on Qualified Energy Conservation Bonds
Letter from Governor Heineman
appointing the Nebraska Energy Office as the allocating agency, July 16,
2012
Status
of Nebraska's Allocation, July 23, 2015
Davis-Bacon Labor Standards
Pursuant to the American Recovery and Reinvestment Act,
Division B, section 1601, Davis-Bacon labor standards must be
applied to projects financed with the proceeds of any Qualified
Energy Conservation Bond (as defined in section 54D of the Internal
Revenue Code of 1986) issued after February 17, 2009.
The Department of Labor, Wage and Hour Division has issued guidance
in All Agency Memorandum No. 208 concerning applicability
of Davis-Bacon labor standards to construction financed with the
proceeds of these tax-favored bonds under ARRA Division
B, section 1601.
The Davis-Bacon contract clauses stated in 29 CFR 5.5(a)(1) through
(10) must be incorporated into covered contracts for construction,
alternation, or repair work. Additional information regarding
the application of Davis-Bacon labor standards is available at
the U.S. Department of Labor Wage and Hour Division website at
www.dol.gov/whd/recovery/
(opens in a new tab/window).
For more information about utilizing Qualified
Energy Conservation Bonds in Nebraska, contact the Nebraska Energy Office
at 402.471.2867.
Sequestration Cuts and Qualified Energy Conservation Bonds
The Internal Revenue Service has recently
released clarification regarding the sequestration cuts on Qualified
Energy Conservation Bonds. According to Internal Revenue Service,
7.2% sequestration reductions in payments will apply throughout
fiscal year 2014 unless Congress acts otherwise. Internal Revenue
Service Update: Effect of Sequestration on Certain State &
Local Government Filers of Form 8038-CP notes:
“...refund payments processed on or after October 1, 2013 and
on or before September 30, 2014 will be reduced by the fiscal
year 2014 sequestration rate of 7.2 percent, irrespective of
when the amounts claimed by an issuer on any Form 8038-CP was
filed with the IRS. The sequestration reduction rate will be
applied unless and until a law is enacted that cancels or otherwise
impacts the sequester, at which time the sequestration reduction
rate is subject to change”. See
Update:
Effect of Sequestration on State & Local Government Filers
of Form 8038-CP (opens in a new tab/window).
