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DOE Releases Updated FAQs, User Guide as Application Window Nears for Renewable Energy ITC Low-Income Community Bonus Program

Tuesday, October 17, 2023 - 2:45PM

With the application window opening Thursday at 9 a.m. ET for the low-income communities bonus program for renewable energy investment tax credits (ITCs), the U.S. Department of Energy (DOE) released an updated frequently asked questions (FAQ) document and applicant user guide. Created through the Inflation Reduction Act of 2022, the low-income community bonus program provides an additional 10% or 20% ITC bonus for qualified solar and wind energy facilities with a combined 1.8 gigawatts of capacity annually in four categories: qualified low-income residential buildings (200 MW), located in low-income communities (700 MW) located on Indian Land (200 MW) and qualified low-income economic benefit projects (700 MW). The DOE will review applications and make recommendations to the Internal Revenue Service (IRS), which will allocate up to the cap for eligible solar and wind capacity this year through the competitive allocation process. Applicants generally must apply for a particular category, and applications submitted in the 30-day window starting Thursday will be considered together. Depending on the availability of capacity, DOE/IRS may reallocate capacity from one category to another and applications will continue to be accepted through early 2024.

Contact Novogradac partners Dirk Wallace, CPA, or Nat Eng, CPA, for application assistance with the low-income community bonus program. Gain deeper understanding of clean energy bonus provisions and network with other clean energy professionals at the Novogradac 2023 Fall Renewable Energy and Environmental Tax Credits Conference, Nov. 2-3 in Washington, D.C. Use of clean energy tax incentives on affordable housing will be a topic at the Novogradac 2023 Housing Tax Credit Finance Conference, Nov. 30-Dec. 1 in Las Vegas.

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