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Application info and tips from DOE and Treasury leaders

SEIA held a webinar on October 24 with Anisha Steephen, Senior Advisor to the Counselor for Racial Equity at Dept. of Treasury and Rebecca Feuerlicht, Chief of the Energy Justice Projects Division at the Dept. of Energy. The two discussed some key points of the low-income bonus credit application opening.

Some of the highlights:

  • For program year 2023, at least 50% of the total capacity in each category is set aside for two types of facilities that meet additional selection criteria
    • Additional criteria is based on two categories:
      • Facility ownership – tribal enterprises, etc.
      • Geography – Persistent Poverty Counties, etc.
        • Applications meeting both ownership and geographic criteria will be prioritized ahead of those that just meet one
        • DOE released a public mapping tool that shows census tracts that meet low-income community eligibility and geographic additional selection criteria
  • All applications received in the first 30 days the portal is open will be reviewed equally — there’s no advantage to submitting on Day 1 vs. Day 30.
    • If an application category is filled to capacity within the first 30 days, a lottery will determine the order the applications are reviewed
    • All applications received after the initial 30-day window will be reviewed based on their submission date
  • The application portal will remain open until the close of the program year, but there’s not yet a set date for the close of the 2023 program year
    • DOE is expecting to accept them through early 2024
  • Ownership transfers are possible for the same facility after an allocation is secured. More details on those transfers are forthcoming.
  • Dedicated email for questions about this program: EJBonusSupport@hq.doe.gov

 

The U.S. Dept. of Energy (DOE), U.S. Dept. of the Treasury, and Internal Revenue Service (IRS) today announced the opening of applications for the Low-Income Communities Bonus Credit Program. This program, supported by the Inflation Reduction Act, addresses the need to expand access to cost-saving clean energy projects in underserved communities through a groundbreaking tax incentive for solar and wind projects across the country. The historic program supports the Biden-Harris Administration’s Justice40 commitments to equity and environmental justice and represents the most significant tax incentive in U.S. history to promote clean energy investments in low-income communities, on Tribal Land, and within affordable housing.

“President Biden’s Investing in America agenda includes historic incentives designed to drive clean energy investments to underserved communities. When combined with other incentives, wind and solar projects in low-income communities could receive as much as a 70% credit,” said U.S. Secretary of Energy Jennifer M. Granholm. “The Low-Income Communities Bonus Credit program will help community-based projects deliver direct benefits to families, making solar and wind energy more affordable and more accessible — revitalizing communities and exemplifying our whole-of-government effort to support low-income and Tribal communities in their energy transition efforts.”

Starting today, eligible applicants can participate in this groundbreaking program through the program’s new applicant portal. DOE is accepting applications for the initial application window over the next 30-days for the 2023 program year. After the initial 30-day application window closes, applications for 2023 will be considered on a rolling basis. Additional information about program capacity, eligibility and the allocation processes can be found in the IRS Final Regulations and Revenue Procedure 2023-27.

The Low-Income Communities Bonus Credit Program provides a 10 or 20 percentage point credit increase to the investment tax credit for qualified solar or wind energy facilities that are less than 5 MWAC. The program allows for up to 1.8 GW of eligible solar and wind capacity to be allocated in credits each year. Treasury and the IRS established the program under section 48(e) to promote cost-saving clean energy investments in low-income communities, on Indian land, as part of affordable housing developments, and benefitting low-income households.

DOE’s Office of Economic Impact and Diversity is administering the Low-Income Communities Bonus Credit Program on behalf of Treasury and IRS. The goals of the program are to increase access to clean energy in low-income communities, encourage new market participants and benefit individuals and communities that have experienced adverse health or environmental effects or lacked economic opportunities. The program is designed to ensure undeserved communities can receive allocation capacity through specific eligibility criteria and to ease the application burden on communities through a user-friendly platform and various program resources.

Learn more about the IRS Initial Guidance Establishing Program to Allocate Environmental Justice Solar and Wind Capacity Limitation Under Section 48(e) and access important Low-Income Communities Bonus Credit Program resources on the DOE website. For program-related questions and applicant portal assistance, email EJBonusSupport@hq.doe.gov.

News item from DOE