On March 29, 2024, Treasury released 2024 program year guidance for the Low-Income Communities Bonus Credit under IRC section 48(e) created by IRA section 13103. The bonus credit boosts the Investment Tax Credit (ITC) by up to 20-percentage points for qualified solar or wind facilities built in low-income communities, increasing new market participants and benefitting communities that have experienced adverse environmental and health effects as well as lacked economic opportunities.
Treasury’s procedural guidance indicates that 2024 allocations will include up to: 600 megawatts to facilities located in low-income communities; 200 megawatts to facilities located on Indian lands; 200 megawatts to facilities that are part of federally-subsidized residential buildings; and 800 megawatts to facilities where at least 50 percent of the financial benefits of the electricity produced go to households with incomes below 200 percent of the poverty line or below 80 percent of area median gross income. Treasury also provided guidance as to the ownership and geographic selection criteria restrictions for at least 50% of the 2024 capacity. The program application period will open during the second quarter of 2024.
Final regulations, Frequently Asked Questions, an applicant user guide, and other resources can be found on the IRS program landing page.