On February 13, 2023, the Department of the Treasury (Treasury) issued guidance establishing the Low-Income Communities Bonus Credit Program, which provides increased tax credits under the IRC section 48 Investment Tax Credit (ITC) for solar and wind projects placed in service in low-income communities. The initial guidance provides guidance to applicants for 2023 capacity limitation allocations, eligibility requirements, a description of the four statutory facility categories for which an eligible facility may request an allocation, amounts of capacity limitation reserved for each facility category, a general description of the program design and goals, the application review process, and the proposed timeline for opening two 60-day application periods in 2023 based on project categories.
The guidance applies to owners of certain solar and wind facilities placed in service in connection with low-income communities that are eligible for the section 48 energy investment credit.
Treasury will issue additional guidance outlining specific application procedures, applicable definitions, and other information necessary to submit an application for 2024 capacity limitation allocations.