The Inflation Reduction Act's Clean Electricity Low-Income Communities Bonus Credit Program is getting a boost. The program now includes more clean energy technologies and offers greater financial benefits to low-income households.
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| The U.S. Treasury and IRS propose expanding the Clean Electricity Low-Income Communities Bonus Credit Program to incentivize clean energy investments in underserved areas and provide financial benefits to low-income households. Symbolic image |
Washington, D.C., USA – August 30, 2024:
The U.S. Department of the Treasury and the Internal Revenue Service have unveiled a proposed rule to expand the Clean Electricity Low-Income Communities Bonus Credit Program, a key component of the Inflation Reduction Act. This program aims to incentivize clean energy investments in underserved communities and provide financial benefits to low-income households.
The 48E(h) program builds upon the existing 48(e) program by expanding eligible clean energy technologies beyond wind and solar to include hydropower and geothermal. Additionally, the proposed rules align with the administration's efforts to make the benefits of the Clean Electricity Production Credit and Clean Electricity Investment Credit available to clean energy facilities with zero or less greenhouse gas emissions.
**Key points from the announcement:**
* **Expanded eligibility:** The program now includes additional clean energy technologies like hydropower and geothermal.
* **Increased financial benefits:** The credit offers a 10 or 20 percentage point boost for qualified non-combustion and gasification facilities under 5 megawatts.
* **Prioritized benefits:** The program prioritizes financial benefits to low-income households and includes set-asides for projects in high-poverty communities.
* **Applicant portal:** The program will continue to use the user-friendly Applicant Portal, streamlining the application process.
The Biden-Harris administration views this expansion as a significant step towards ensuring that all Americans benefit from the growth of the clean energy economy. By providing incentives for clean energy investments in underserved communities, the administration aims to lower energy costs, strengthen energy security, and create new economic opportunities.