The U.S. Department of the Treasury and the Internal Revenue Service on Wednesday issued proposed regulations for applicants investing in certain solar and wind powered electricity generation facilities.
The IRS released Notice 2023-17 earlier this year to establish the Low-Income Communities Bonus Credit Program. This document provided initial guidance for potential applicants seeking allocations of calendar year 2023 environmental justice solar and wind capacity limitation.
Under this program, applicants investing in certain solar, and wind powered-electricity generation facilities may apply for an allocation of capacity limitation to increase the amount of an energy investment credit in the year in which the facility is placed in service.
The proposed regulations issued Wednesday request comments on certain definitions and requirements that the Treasury Department and the IRS are considering including in the upcoming program guidance.
The Treasury Department and the IRS request written or electronic comments on all aspects of the proposed rules by June 30.
More information may be found on the Inflation Reduction Act of 2022 page on IRS.gov.