A group of 11 electric cooperatives across the nation have asked the Treasury Department to modify its regulations on clean renewable energy bonds, which they say increases their cost of borrowing and diminishes the value of the CREB program.
Tax-credit bonds provide the holder with an income tax credit in lieu of tax-exempt interest payments. But in separate but similar letters, the unrated co-ops complained that current statutory language and rules establish a double-A rate for determining the rates at which bondholders receive tax credits. This is a higher rate than the co-ops assume for these projects. While the co-ops are unrated, they typically assume their projects are single-A rated.