A new program to spur clean energy investments in underserved communities under the Inflation Reduction Act was announced by the U.S. Department of the Treasury, U.S. Department of Energy (DOE), and the Internal Revenue Service. Applications for the Low-Income Communities Bonus Credit Program under Section 48(e) of the Internal Revenue Code will open at 8 am CST on October 19, 2023. The program will provide a 10 or 20-percentage point tax credit boost for solar and wind projects that are in low-income communities or on Indian land, are part of affordable housing developments, or benefit low-income households. The program is intended to increase access to clean energy in low-income communities, encourage new market participants, and benefit individuals and communities that have experienced adverse health or environmental effects or lacked economic opportunities.
Treasury and DOE will launch the program help desk and post slides and a webinar recording for all stakeholders with details about the application materials and process.
Materials, including the final regulations, to help applicants prepare their submissions and maps detailing eligibility are on the DOE’s landing page: Low-Income Communities Bonus Credit Program. This page will be updated with additional resources over the coming weeks so please continue to check back for updates.