CREBS or CLEAN RENEWABLE ENERGY BONDS were first created as part of the Energy Policy Act of 2005, and they will proivde a benefit for the wind turbine. (For more information on CREBS refer to this particle, Windmills on the Prairie)
CREBs are “tax credit bonds" in which interest is paid for by the Federal Government in the form of tax credits.
The Goal of CREBS to provide comparable subsidy for Municipalities and Schools to invest in renewable energy generation.
CREBS are structured as financing tools to aid in the construction of a project such as a wind turbine farm.
Why are CREBS so important to municipalities and schools that wish to develop renewable energy programs such as a wind turbine farm is they are interest free loans.
This means that the wind turbine farm will provide a quicker return on investment and have the least impact on the local taxpayer who usually has to pay principal and interest on loans when bonds are issued.
The difference for the Mayor's Wind Turbine Alliance in interest cost just for one turbine for School District 20 is the savings of over $2,000,000 in interest costs.
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