The IRS and the Treasury Department issued proposed regulations on May 31 for applicants investing in certain solar- and wind-powered electricity generation facilities.
The IRS on Feb. 13 provided guidance to establish a program—the Low-Income Communities Bonus Credit Program under Section 48(e) of the Internal Revenue Code—to allocate amounts of environmental justice solar and wind capacity limitation to qualified solar and wind facilities eligible for the investment tax credit. This program incentivizes solar and wind power in certain low-income areas under the Inflation Reduction Act of 2022.
The IRS and Treasury on Wednesday proposed rules for the application process and technical guidance for this program, which provides up to a 20-percentage point boost to the investment tax credit for up to 1.8 gigawatts annually of solar and wind energy projects—with maximum output of less than 5 megawatts—located in low-income communities or otherwise serving low-income populations.
The proposed regulations also request comments on certain definitions and requirements that the IRS and Treasury are considering including in the upcoming program guidance. Written or electronic comments on the proposed rules are due by June 30.
Thanks for reading CPA Practice Advisor!
Subscribe Already registered? Log In
Need more information? Read the FAQs
Tags: Income Tax, IRS, Taxes
