US Treasury, US IRS issued guidance for the 2024 program year of the Low-Income Communities Bonus Credit Program under Section 48(e) of the Internal revenue code.
Also, announced program would open for applications during second quarter of 2024.
Aims to increase investment in clean energy facilities in low-income communities.
Follows the establishment of low-income bonus credit program in 2023, see #163158.
Procedural Guidance
Annually allocates 1.8 gigawatts of capacity through competitive application across four categories of solar/wind facilities with maximum output of less than 5 megawatts.
For 2024 program year US IRS will initially allocate up to 600 megawatts to facilities located in low-income communities, 200 megawatts to facilities located on Indian land.
Also, 200 megawatt to facilities that are part of federally-subsidized residential building
In addition, 800 megawatts to facilities where at least 50% of financial benefits go to households with incomes below 200% of poverty or 80% of area median gross income.
50% of capacity will be reserved for projects meeting ownership or selection criteria.
May 13, 2024 US Treasury Application Opening
On May 13, 2024, US Treasury and US IRS announced that the applications will open on May 28, 2024 for the 2024 Low-Income Communities Bonus Credit Program.
Applications submitted within first 30 days to be treated as submitted at same time.
This ensures that all applicants, regardless of size or resources, have equal opportunity to participate, and DOE will then continue to accept applications on rolling basis.
May 17, 2024 US IRS Capacity Limitation Carryover
On May 17, 2024, US IRS released announcement 2024-25 on total unallocated environmental capacity limitation for Low-Income Communities Bonus Credit Program.
Because the annual limitation for the 2023 program year exceeds amount allocated, excess is carried over to the 2024 program year and increases the capacity limitation.
May 28, 2024 US IRS Portal Opens
On May 28, 2024, US IRS reported application portal for bonus credit program is open.
Applications for program began May 28 and are being accepted through Jun. 27, 2024.
With all applications considered to have been submitted on the same date and time.
After the initial 30-day window, applications will be evaluated on a rolling basis.
Sep. 2024 US Treasury Report
On Sep. 4, 2024, US Treasury issued analysis on first year of community bonus credit program, reported that program received over 54k applications, approved over 49k.
US Treasury and US IRS aim to increase adoption of and access to renewable energy facilities in low-income communities, and areas with environmental injustice concerns.
Encourage new market participants, provide social and economic benefits to individuals and communities with issues re pollutions, the economy, health and the environment.
Allocated credits to over 48,000 behind-the-meter residential energy facilities in order to reduce household electricity costs for single family or multifamily residences.
Nearly 100 new energy facilities for Indian lands, over 800 energy facilities installed on affordable housing developments, facilities for low-income economic benefit project.
Sep. 24, 2024 US Treasury Next Steps
On Sep. 24, 2024, US Treasury, US IRS reported that over 50,000 applications were submitted requesting over 6 gigawatts of capacity for clean energy projects.
Applications accepted on a rolling basis until Oct. 10, 2024; Department of Energy will accept applications on rolling basis for projects located on Indian Lands until Nov. 12.
Information re reallocations of unallocated capacity to be announced in coming weeks.
Applications that do not receive an allocation will be withdrawn; applicants can reapply.
