Treasury Issues Proposed Rules on Clean Electricity Low-Income Communities Bonus Credit

On August 30, 2024, Treasury released proposed rules on the Clean Energy Low-Income Communities Bonus Credit Program under section 48(e) of the Internal Revenue Code, created by section 13702 of the IRA. The proposal provides updated definitions to expand financial benefits delivery mechanisms to account for future technologies and ensure additional benefits flow to low-income subscribers; proposes to maintain a sub-reservation for certain residential facilities (such as behind-the-meter rooftop solar) and set-asides for Additional Selection Criteria for applications; and provides that at least 50% of allocations in each category support projects owned by tax-exempt entities (such as state, local and Tribal governments and non-profits), worker cooperatives, Tribal enterprises, and projects that are located in communities that have high poverty and energy burdens. Treasury invites comments during the 30-day comment period and will host a public hearing on October 17, 2024, and a Tribal consultation on September 27, 2024.