Summer 2023 Solar Industry Update
Low-Income Communities Bonus Newest Guidance
Low-Income Communities Bonus Credit Program (48(e)), awards an upfront 10% or 20% bonus tax credit for a maximum of 1.8 GWdc
per year of solar projects < 5 MW ac in size. Treasury posted initial guidance in February and final regulations for 2023 awards in
August, largely in line with Notice of Proposed Rulemaking released in June.
700 MW
200 MW
1
2
10% credit
low-income community as defined by the New Markets Tax Credit
Indian Land
4
20% credit
qualified low-income economic benefit project
3 qualified low-
income residential
building project
Additional Selection Criteria apply
30-day application period in
which all applicants receive
the same time stamp.
Then, a rolling process if
under allocation, a lottery
process if over allocation.
Priority will be given to
Additional Selection Criteria
applications.
Treasury has also decided on two Additional Selection Criteria. At least 50% of each category will be reserved to projects that meet at
least one of the additional criteria (priority will be given to applications meeting both criteria):
1. Owned by a Tribal enterprise or Alaska Native Corporation, renewable energy cooperative (where 51% of owners are low-income
households), qualified renewable energy company (an entity serving low-income communities and provides pathways for clean
energy adoption for those households), or a tax-exempt entity (including states, tribes, and rural electric co-ops).
2. Located in a Persistent Poverty county (where more than 20% of the population have experienced high rates of poverty over the
past 30 years) or census tracts designated in the Climate and Economic Justice Screening Tool (CEJST) as disadvantaged in
terms of energy burden, PM2.5 exposure, and income.View entire presentation