Dear USET/USET SPF Family,
The U.S. Department of the Treasury has issued final regulations for the Low-Income Communities Bonus Credit Program (Low-Income Bonus Credit Program). These regulations amend Income Tax Regulations (26 CFR Part 1) to add a new Section 48(e) of the Internal Revenue Code, which was established by the Inflation Reduction Act of 2022 (P.L. 117-169). Section 48(e) increases adoption of and access to renewable energy facilities in underserved and environmental justice communities, encourages new market participants, and provides substantial benefits to underserved communities and individuals that have been historically marginalized from economic opportunities and overburdened by environmental impacts. The Low-Income Bonus Credit Program under Section 48(e) will be administered by the Department of Energy’s Office of Economic Impact and Diversity (OEID) in partnership with Treasury and the Internal Revenue Service (IRS). This program aims to provide an up to 20-percentage point credit boost for renewable energy projects in low-income communities.
The White House has announced that it will host an informational webinar on the final regulations for Section 48(e) and the Low-Income Credit Program. Details regarding this webinar are as follows—
For more information on the Low-Income Bonus Credit Program, please visit the Department of Energy’s OEID website by clicking here. The final regulations will be published in the Federal Register on August 15, 2023, which will be viewable here. Until the final regulations are published in the Federal Register, the unpublished version can be viewed by clicking here. An IRS Fact Sheet and Frequently Asked Questions document are forthcoming and will be published on the Department of Energy’s OEID website.
For more information, please contact Brian Howard, USET SPF Senior Policy Analyst, at bhoward@usetinc.org.
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