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Renewable Energy Tax Credits News Briefs - January 2024

The U.S. Department of the Treasury and Internal Revenue Service Dec. 4, 2023, partnered with the Department of Energy (DOE) to announce the receipt of more than 46,000 applications for new energy facilities in affordable housing, low-income communities, on Indian land or directly benefiting low-income households, requesting more than four times the total available capacity from the Inflation Reduction Act (IRA) of 2022’s Low-Income Communities Bonus Credit program. The applications were filed during the initial 30-day period that ended Nov. 18, 2023. Of the 1.8 gigawatts of capacity available, 200 megawatts are set aside for facilities that are part of federally subsidized residential buildings, including those supported by the low-income housing tax credit. The DOE provided a program dashboard to quantify the demand. Another base 1.8 GW of capacity will be available via application in 2024.

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Arevon Energy completed a $529 million, 600 MWh solar-plus-storage transaction in November 2023 in Imperial County in California. The transaction, named Vikings, includes $191 million of tax credit equity from transferability. Arevon purchased the tax credits from JPMorgan Chase.

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Post-IRA clean energy investments have largely benefited areas with below-average wages and below-average college graduation rates, according to an analysis the U.S. Department of the Treasury issued in November 2023. The report found that more than 80% of such investment has gone to counties with below-average wages while more than 85% went to counties with below-average college graduation rates. Investments have grown in “energy communities,” areas earmarked with a history of reliance on fossil fuel production.

Journal Category:

Renewable Energy Tax Credits

Authors:

Novogradac

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