### Question
How is the term clean renewable energy bond defined?


### Answer
The term **clean renewable energy bond** is defined in *26 U.S.C. § 54* as the following:

> any bond issued as part of an issue if—



(A) the bond is issued by a qualified issuer pursuant to an allocation by the Secretary to such issuer of a portion of the national clean renewable energy bond limitation under subsection (f)(2),



(B) 95 percent or more of the proceeds of such issue are to be used for capital expenditures incurred by qualified borrowers for one or more qualified projects,



(C) the qualified issuer designates such bond for purposes of this section and the bond is in registered form, and



(D) the issue meets the requirements of subsection (h)

#### Citation:
  - *26 U.S.C. § 54*
  - Heading: **Subtitle A-Income Taxes > CHAPTER 1-NORMAL TAXES AND SURTAXES > Subchapter A-Determination of Tax Liability > PART IV-CREDITS AGAINST TAX > Subpart H-Nonrefundable Credit to Holders of Clean Renewable Energy Bonds**

