January 8, 2025

On January 8, 2025, the U.S. Department of Treasury (Treasury) and the Internal Revenue Service (IRS) released the final rules for the Clean Electricity Low-Income Communities Bonus Credit Amount Program (Program), under Section 48E(h) of the Internal Revenue Code, established by the Inflation Reduction Act. Starting in 2025, the Program replaces the Low-Income Bonus Communities Bonus Credit Program that was established under 48(e). The 48E(h) program is an expansion of the first-of-its-kind bonus credit designed to lower home energy costs and spur clean energy investments in low-income communities and benefitting low-income households, on Indian Land, or as part of affordable housing developments. The Program provides an allocated “bonus” of either 10% or 20% depending on project category to eligible projects “placed in service” by a range of entities, including Tribal Nations and Tribal enterprises.

According to Treasury, the Final Rule incorporates Tribal feedback by supporting Tribal and Native entity access to this program through the Additional Selection Criteria, direct application by Tribal enterprises, maintenance of the 200 MW set aside for projects on Indian Lands, and recognition of Tribal regulatory authority related to project viability documentation.

Treasury previously hosted a Tribal consultation on the Notice of Proposed Rulemaking (NPRM) on the Program on September 27, 2024. USET SPF submitted formal comments on the NPRM this past October expressing general support for the Proposed Rule while advocating for additional actions that ensure Tribal Nations can fully utilize the program. Pursuant to its Tribal consultation policy, Treasury recently released a Tribal consultation summary and federal response regarding the feedback received in Tribal consultation.

The Treasury has announced it will be hosting a Tribal webinar to discuss final regulations on the Clean Electricity Low-Income Communities Bonus Credit Amount Program, with a focus on aspects that impact Tribal Nations. Details regarding the upcoming webinar are as follows—

• Date: January 16, 2025 at 1:00pm ET
• Register Here

For more information, please contact Leigh Mitchell, USET SPF Senior Policy Analyst, at lmitchell@usetinc.org.

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Established in 1969, the United South and Eastern Tribes, Inc. (USET) is a non-profit, inter-Tribal organization serving thirty-three (33) federally recognized Tribal Nations from the Northeastern Woodlands to the Everglades and across the Gulf of Mexico. USET is dedicated to enhancing the development of Tribal Nations, improving the capabilities of Tribal governments, and improving the quality of life for Indian people through a variety of technical and supportive programmatic services.

Established in 2014, the USET Sovereignty Protection Fund (USET SPF) is a non-profit, inter-Tribal organization advocating on behalf of thirty-three (33) federally recognized Tribal Nations from the Northeastern Woodlands to the Everglades and across the Gulf of Mexico. USET SPF is dedicated to promoting, protecting, and advancing the inherent sovereign rights and authorities of Tribal Nations and in assisting its membership in dealing effectively with public policy issues.