The Dept. of the Treasury and Inside Revenue Service (IRS) has issued procedural guidance for the 2024 program 12 months of the Low-Income Communities Bonus Credit score Rating Program beneath Half 48(e) of the Inside Revenue Code. Treasury moreover launched this method would open for capabilities by means of the second quarter of 2024.
This program by the Inflation Low cost Act provides a ten or 20% bonus to the Funding Tax Credit score rating (ITC) for licensed small picture voltaic or wind facilities in low-income communities, on Indian land, as part of moderately priced housing developments, and benefitting low-income households.
Throughout the first year of the program, the administration acquired greater than 46,000 capabilities all through the primary 30 days from communities all through the nation, signaling sturdy demand. This 12 months, the federal authorities is unlocking 1.8 GW of additional functionality.
“The first 12 months of implementation seen sky-high demand for picture voltaic and wind power investments in underserved communities, and we anticipate that momentum to proceed this 12 months,” said U.S. Deputy Secretary of the Treasury Wally Adeyemo. “These investments are creating jobs and decreasing energy costs in communities which have prolonged been held once more by lack of funding, along with providing new options for small firms in these communities to revenue from the growth of the clear energy financial system.”
As equipped in earlier steering, the Low-Income Communities Bonus Credit score rating Program yearly allocates 1.8 GW of functionality accessible by an aggressive utility all through 4 lessons of licensed picture voltaic or wind facilities with most output of decrease than 5 MW.
The 2024 program will initially allocate as a lot as:
- 600 MW to facilities located in low-income communities;
- 200 MW to facilities located on Indian lands;
- 200 MW to facilities that may be part of federally backed residential buildings;
- 800 MW to facilities the place a minimal of fifty% of the financial benefits of {the electrical} power produced go to households with incomes beneath 200% of the poverty line or 80% of area median gross income.
For the 2024 program 12 months, a minimal of fifty% of the aptitude of each class could be reserved for initiatives meeting certain possession, and/or geographic alternative requirements as outlined in Treasury and IRS steering.
Further data may very well be found on the DOE program landing page.
