Applications open on May 28th

Applications for the Low-Income Community Bonus Credit Program will open later this month. The program allocates 1.8 gigawatts of environmental justice solar and wind capacity limits related to certain solar and wind facilities installed in low-income communities.

When and how to submit your application

On Monday, the U.S. Treasury and IRS announced that applications for the 2024 Low-Income Community Bonus Credit Program will open May 28, 2024.

The agency also announced that approximately 325 MW of available capacity will be carried over to the 2024 program year. This means that the total limit in 2024 will be 2.125 gigawatts. The program allocates power according to the following categories:

• 800 MW for low-income community projects.
• 200 MW for Indian land projects.
• 225 MW for low-income residential building projects.
• 900 MW for qualified low-income economic benefit projects.

All Low Income Community Bonus Credit Program applications submitted within 30 days (from the application opening date) will be considered submitted on the same date and time. The Department of Energy (DOE) will continue to accept applications on a rolling basis beyond the initial 30-day period.

During the initial 30-day application period for 2023, the same program received more than 46,000 applications, representing over 8 GW of generating capacity.

The purpose of the program is to support President Biden’s Invest in America agenda by reducing energy costs, promoting investment in clean energy jobs in low-income communities, and promoting business growth.

Treasury and the Department of Energy will host a webinar on May 16, 2024, at 1:00 PM ET to provide more information about the application process. Potential applicants can register for the webinar using this link.

More information about the program, including the 2024 revenue process, final regulations, and other resources to assist applicants, can be found on the DOE program homepage.

Low-Income Community Bonus Credit Program Information

The Low-Income Community Bonus Credit Program is part of the Inflation Reduction Act of 2022. Under this program, qualified solar or wind facilities in low-income communities will receive a 10% or 20% increase in investment tax credits.

“The Low-Income Community Bonus Credit Program is already increasing access to clean, reliable power in underserved communities, lowering energy costs for low-income families, and creating good-paying jobs,” says John Podesta, Senior Advisor to the International President. Climate Policy said in a statement.

Officially, the program launched in February 2023. At that time, the IRS and Treasury developed initial program guidance for 2023 applicants.

Each year, the program allocates 1.8 gigawatts of capacity through applications to four categories of solar or wind facilities. Facilities that meet additional selection criteria will be offered at least 50% of the capacity limits in each category.

Please see the program press release for additional selection criteria and other details.