New Guidelines for the IRS’s Low-Income Communities Solar Tax Credit Program

Internal Revenue Service

New Guidelines for the IRS’s Low-Income Communities Solar Tax Credit Program

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 provides information on general eligibility requirements. Descriptions of the four statutory facility categories, and the reserved capacity limitations for each category. Additionally, it outlines the program’s overview, application review process, and projected schedule for the two 60-day application periods in 2023.

In order to qualify, owners of eligible solar and wind facilities in low-income communities must diligently follow the guidelines specified in this document. Additionally, the Treasury Department and IRS will release program guidance providing application procedures, definitions, and necessary information.

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