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U.S. Department Of Treasury And U.S. Department Of Energy To Open Applications For Investing In America Program

The America Program provides a 10 or 20% tax credit boost for wind projects in low-income communities. 

 

October 23, 2023

The U.S. Department of Treasury, U.S. Department of Energy, and IRS announced that the applications for the low-income communities bonus credit program under section 48 of the Internal Revenue Code are now open. 

This program provides a 10 to 20% boost to the investment tax credit for wind facilities in low-income communities. The main goals of the program are to increase access to clean energy in low-income communities, benefit individuals and communities that have experienced adverse environmental effects, and encourage new market participants. 

This program will lower energy costs and provide breathing room for hard-working families, create clean energy jobs in low-income communities, and support small businesses.

The Low-income communities bonus credit program allocates around 1.8 gigawatts via competitive allocation for the 2023 program across four categories. The IRS plans to distribute energy capacities as follows: 700 megawatts to facilities in low-income areas, 200 megawatts to those on Indian land, 200 megawatts to facilities associated with federally-subsidized residential buildings like those supported by the Low-Income Housing Tax Credit and Section 8 of the Housing Act. Additionally, 700 megawatts will be allocated to facilities where over half of the electricity’s financial benefits are directed to households earning less than 200% of the poverty threshold or below 80% of the area’s median gross income.

The applications for the 2023 program will be accepted through the early next year depending on the availability of the capacity. The Treasury Department along with the IRS may reallocate capacity between categories and the unclaimed categories will go to the 2024 program when another capacity will be available via application. 

 

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The content provided in this article draws inspiration and includes quotes from various reputable sources, including news articles, government data, and interviews. Affordable Housing 411 strives to ensure accuracy and credibility, but the information presented may be based on some external sources. We encourage readers to refer to the referenced materials for more in-depth insights and verification.

U.S. Department of Treasury. “U.S. Department of the Treasury, U.S. Department of Energy, IRS Open Applications for Investing in America Program to Spur Clean Energy Investments in Underserved Communities”. U.S. Department of Treasury, October 19, 2023, 

U.S. Department of the Treasury, U.S. Department of Energy, IRS Open Applications for Investing in America Program to Spur Clean Energy Investments in Underserved Communities | U.S. Department of the Treasury

 

Last Updated: September 20, 2021