Low-Income Communities Bonus Credit Program: Applications Open on May 28


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Low-income Communities Bonus Credit Program

Applications for the Low-income Communities Bonus Credit Program will open later this month. The program allocates 1.8 gigawatts in environmental justice solar and wind capacity limitation with regard to specific solar and wind facilities installed in low-income communities.

When and how to submit applications

On Monday, the U.S. Department of the Treasury and IRS announced that applications for the 2024 Low-Income Communities Bonus Credit Program will open on May 28, 2024.

Also, the agencies announced that about 325 megawatts of available capacity will carry forward to the 2024 program year. This means that the total limit for 2024 will be 2.125 gigawatts. The program will allocate the power in the following categories:

  • 800 MW for projects in low-income communities.
  • 200 MW for projects on Indian land.
  • 225 MW for low-income residential building projects.
  • 900 MW for qualified low-income economic benefit projects.

All Low-Income Communities Bonus Credit Program applications submitted within 30 days (of opening of application) will be considered to be submitted on the same date and time. The Department of Energy (DOE) will continue to accept the applications on a rolling basis after the initial 30-day period.

During the initial 30-day application window in 2023, the same program received more than 46,000 applications, representing over 8 GW of generation capacity.

The program’s objective is to support President Biden’s Investing in America Agenda by reducing energy costs, boosting investment in clean energy jobs in low-income communities, as well as boosting business growth.

The Treasury and the Dept. of Energy will host a webinar (on May 16, 2024, at 1:00 p.m. ET) to provide more information on the application process. Potential applicants can use this link to register for the webinar.

More details on the program, including the 2024 Revenue Procedure, final regulations, and other resources to assist applicants, are available on the DOE program homepage.

About the Low-Income Communities Bonus Credit Program

The Low-Income Communities Bonus Credit Program is part of the Inflation Reduction Act of 2022. Under the program, qualified solar or wind facilities in low-income communities receive an increase of 10% or 20% to the investment tax credit.

“The Low-Income Communities Bonus Credit Program is already boosting access to clean, reliable power in underserved communities, helping lower energy costs for low-income families, and creating good-paying jobs,” John Podesta, Senior Advisor to the President for International Climate Policy, said in a statement.

Officially, the program was launched in February 2023. At the time, the IRS and the Treasury Department developed an initial program guidance for the applicants of calendar year 2023.

Annually, the program allocates 1.8 gigawatts of capacity through application across four categories of solar or wind facilities. A minimum of 50% of the capacity limitation in each category is offered to the facilities meeting additional selection criteria.

Visit the program’s press release for information on the additional selection criteria and other details.

This article originally appeared on ValueWalk and was syndicated by MediaFeed.

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