{"id":108292,"date":"2025-01-08T10:04:48","date_gmt":"2025-01-08T15:04:48","guid":{"rendered":"https:\/\/\/?p=108292"},"modified":"2025-01-08T10:04:48","modified_gmt":"2025-01-08T15:04:48","slug":"treasury-releases-final-rules-for-ira-low-income-bonus-credit","status":"publish","type":"post","link":"https:\/\/\/2025\/01\/treasury-releases-final-rules-for-ira-low-income-bonus-credit\/","title":{"rendered":"Treasury releases final rules for IRA low-income bonus credit
The application period opens on January 16 and now includes more clean energy technologies.<\/span>"},"content":{"rendered":"

On January 8, the U.S. Department of the Treasury and the IRS released final rules<\/a> and procedural guidance<\/a> for the Section 48E(h) Clean Electricity Low-Income Communities Bonus Credit Amount Program.<\/p>\n

The 48E(h) program is an expansion of the first-of-its-kind 48(e) bonus credit designed to lower home energy costs and spur clean energy investments in low-income communities and benefitting low-income households, on Indian Land, or as part of affordable housing developments. Treasury analysis of the first year of the 48(e) program showed that the program received over 54,000 applications from 48 states, the District of Columbia and four territories. Approved applications are expected to generate $3.5 billion in investments in low-income communities and on Indian Lands and are estimated to generate $270 million in offset energy costs annually. During the second year of the 48(e) program, the program received over 57,000 applications totaling over 1.9 GW of clean energy generation. Approved applications are expected to generate approximately $4 billion in public and private investment into communities and almost $350 million in offset energy costs annually.<\/p>\n

The rules released today highlight the expanded list of program-eligible technologies beyond wind and solar to zero-emissions technologies like hydropower and geothermal. The full set of program-eligible facilities and how that list will be updated in the future is defined in the Section 48E Clean Electricity Investment Credit final regulations<\/a>. The allocated credit provides a 10 or 20 percentage point boost on top of the 30% 48E investment tax credit (assuming prevailing wage and apprenticeship requirements are met).<\/p>\n

Read more about the new technology-neutral clean energy ITC here.<\/strong><\/em><\/a><\/p>\n

\u201cExpanding the Clean Electricity Low-Income Communities Bonus Credit will help lower energy costs in communities that have been overlooked and left out for too long and empower developers to work alongside communities to provide tailored solutions to meet their energy and economic needs,\u201d said U.S. Deputy Secretary of the Treasury Wally Adeyemo. \u201cThe final rules announced today will help ensure that all Americans benefit from the growth of the clean energy economy.\u201d<\/p>\n

The 48E(h) program will allocate bonuses to 1.8 GW of clean electricity generation serving low-income communities each year, from 2025 through at least 2032. For the 2025 Program Year, the application period will open on January 16, 2025, at 9:00 a.m. ET and close on August 1, 2025, at 11:59 p.m. ET. For the 2026 Program Year and subsequent program years, the application period will open the first Monday of February at 9:00 a.m. ET and close the first Friday of August at 11:59 p.m. ET.<\/p>\n

The final rules announced today make key changes from the 48(e) program, including changes due to the statutory transition to the 48E Clean Electricity Investment Credit<\/a> as well as the incorporation of feedback received through public comment and lessons learned from previous program years. Select changes include:<\/p>\n