The U.S. Department of the Treasury (Treasury) and the Internal Revenue Service (IRS) has released the final rules and procedural guidance for the Clean Electricity Low-Income Communities Bonus Credit Among Program (Section 48E(h)). This program is part of the Inflation Reduction Act’s changes to the Elect (also known as Direct) Pay tax.
The new rules expand the eligibility of investment technologies to now include facilities that utilize zero-emission technologies such as hydropower, marine and hydrokinetic, geothermal, and nuclear, in addition to solar and wind. The final rules also clarify eligibility requirements for key categories, including broadening the list of housing programs that are eligible to participate as a qualified low-income residential building project and clarifying the financial value that certain projects must provide to low-income households.
From the Department of the Treasury:
“The Final Rule incorporates Tribal feedback by supporting Tribal and Native entity access to this program through the Additional Selection Criteria, direct application by Tribal enterprises, maintenance of the 200 MW set aside for projects on Indian Lands, and recognition of Tribal regulatory authority related to project viability documentation. The rule also recognizes the authority of Alaska Native Corporations and the Department of Hawaiian Homelands over lands they regulate.”
Tribal and Native Entity Webinar
Treasury is hosting a webinar, “Tribal and Native Entity Webinar: Overview of the Clean Electricity Low-Income Communities Bonus Credit Amount Program for Tribes and Native Entities,” on Thursday, January 16th at 1:00 p.m. Eastern Timeto provide an overview of the final regulation with a focus on aspects that impact Tribal governments and Native entities.
Additional Resources:
For any other questions or concerns, please contact Nicholas Lovesee, Director of Policy, at nicholas@nafoa.org
