The IRS has updated its guidance (Rev. Proc. 2024-19) for taxpayers to apply for a 2024 allocation of enhanced credit rates for solar and wind projects built in certain geographic locations or benefiting specific low-income populations.
The Low-Income Communities Bonus Credit Program offers an increased credit of either 10% or 20% for solar or wind projects under 5 MW in connection with certain low-income communities. Unlike other bonus credit amounts, taxpayers must apply to receive a Section 48(c) allocation and funding is capped at 1.8 GW worth of projects annually for 2023 and 2024.
The IRS closed applications for the 2023 allocation on Feb. 29. Rev. Proc. 2024-19 makes several clarifying changes to the application and documentation rules for applying to an allocation in 2024, but the IRS did not set the opening and closing dates for submitting applications.
The revenue procedure supersedes Rev. Proc. 2023–27. The IRS has also released final regulations establishing the rules for the program and applications are made via this Department of Energy dashboard population.
More information from Grant Thornton on the program can be found here.
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