Clean Energy Bonds Act of 2005

The Clean Energy Bonds Act of 2005 (H.R. 2794) was designed to encourage the development of renewable energy projects by providing tax incentives to bondholders. Under this bill, investors who purchased "clean energy bonds" from government entities, electric cooperatives, or the Tennessee Valley Authority would receive a nonrefundable federal tax credit instead of traditional interest payments.

The practical impact of this legislation was to lower the cost of financing for projects that generate electricity from renewable sources, such as wind, solar, biomass, and municipal waste. By making it more affordable for local governments and cooperatives to build green energy infrastructure, the bill aimed to expand the nation's renewable energy capacity through the end of 2008.