Owners of specific solar and wind facilities installed in low-income communities that qualify for the section 48 energy investment credit must abide by the advice in this document.
In accordance with the Inflation Reduction Act, the Department of the Treasury and the Internal Revenue Service have issued new guidance for the establishment of a program to provide solar and wind power to specific low-income areas.
The Low-Income Communities Bonus Credit Program is established by Notice 2023-17 (.pdf), which also offers preliminary advice to prospective applicants for allocations of the calendar year 2023 capacity limitation.
This initial guidance includes general eligibility requirements, descriptions of the four statutory facility categories for which eligible facilities may request allocations, amounts of capacity limitations reserved for each facility category, a general description of the program’s design and goals, the application review procedure, and a proposed schedule for the opening of two 60-day application periods based on project categories in 2023.
Owners of specific solar and wind facilities installed in low-income communities that qualify for the section 48 energy investment credit must abide by the advice in this document.
Additional program guidance outlining specific application procedures, relevant definitions, and other information required to submit an application will be released by the Treasury Department and the IRS.
The Inflation Reduction Act of 2022 page on IRS.gov has more details.
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