In an effort to encourage clean energy investment in certain areas, the Inflation Reduction Act created a clean electricity low-income communities bonus tax credit. The IRS has now issued proposed regulations for claiming it. This credit will be calculated by multiplying the amount of qualified investment made in a facility by an applicable percentage. To qualify, facilities are required to 1) have a maximum net output of less than five megawatts, 2) not be fuel combustion or gasification facilities, and 3) be in or part of certain low-income communities or on Indian land. The regs would apply after Dec. 31, 2024. For more information, see https://bit.ly/3Xumux0 or contact us.
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