The IRS released a notice providing additional guidance on the Qualified Energy Conservation Bond (QECB) program that began nationwide in 2008. As part of the program, Congress has authorized $3.2 billion in QECBs for both renewable energy and energy efficiency projects at the state and local levels. QECBs provide investors with low-interest financing for projects that meet the bond program’s guidelines. The most popular form of QECBs provides the issuer of securities a federal subsidy payment up to 70 percent of the interest paid on bonds issued to finance qualifying QECB projects. In order to clarify which projects actually qualify, the IRS explained two of the main criteria under which QECB projects are financed. First, QECBs can be issued for “green community programs,” which the IRS defines as programs that promote energy efficiency and provide a general public benefit. Second, QECBs can be issued for projects that reduce energy consumption in publicly owned buildings by at least 20 percent. To provide clarity, the IRS notice explains how buildings qualify as publicly owned as well as how an issuer can measure whether the 20 percent test is satisfied. For more information on the QECB program and its relevant guidelines, read the IRS notice.