Posted 12/4/2023, 5:27:00 PM
Flood of Applications for New Clean Energy Tax Credits in Low-Income Areas
- Treasury received over 46,000 applications for 8+ gigawatts of new wind and solar projects under the IRA's Low-Income Communities Bonus Credit Program, over 4 times the 2023 allocation
- The program offers a 10-20% bonus tax credit for projects in low-income areas; demand shows these communities will benefit from clean energy investment
- With excess demand, Treasury will prioritize projects owned by non-profits, local/tribal governments, co-ops, in addition to location
- Allocation may also use lottery system for projects meeting similar criteria
- Clean energy developers can still get the base 30% tax credit if they proceed this year or wait for 2024 program