### Question
How does Income Taxes define qualified energy conservation bond?


### Answer
Under *26 U.S.C. § 54D*, **qualified energy conservation bond** is defined as:

> 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,



(2) the bond is issued by a State or local government, and



(3) the issuer designates such bond for purposes of this section

#### Citation:
  - *26 U.S.C. § 54D*
  - Heading: **Subtitle A-Income Taxes > CHAPTER 1-NORMAL TAXES AND SURTAXES > Subchapter A-Determination of Tax Liability > PART IV-CREDITS AGAINST TAX > Subpart I-Qualified Tax Credit Bonds**

