Clean Electricity Low-Income Communities Bonus Credit Amount Program

Section 13702 of Public Law 117-169, 136 Stat. 1818, 1921 (August 16, 2022), commonly known as the Inflation Reduction Act of 2022 (IRA), added new section 48E(h) to the Internal Revenue Code (IRC) to authorize the Secretary of the Treasury or her delegate (Secretary) to establish a program for calendar years 2025 and succeeding years to award allocations of environmental justice capacity limitation (Capacity Limitation) that increase the amount of the new clean electricity investment credit determined under IRC section 48E(a) (section 48E credit) with respect to eligible property that is part of an applicable facility. The amount of section 48E credit for a taxable year generally is calculated by multiplying the qualified investment for such taxable year with respect to any qualified facility placed in service during that taxable year by the applicable percentage (as defined in IRC section 48E(a)(2)). If an applicable facility is awarded an allocation of Capacity Limitation, IRC section 48E(h) increases the amount of the section 48E credit with respect to the applicable facility by increasing the applicable percentage used to calculate the amount of the section 48E credit (section 48E(h) Increase). The term “applicable facility” is defined in IRC section 48E(h)(2) to mean any qualified facility that (i) is not described in IRC section 45Y(b)(2)(B) (relating to combustion and gasification facilities); (ii) has a maximum net output of less than 5 megawatts (MW) (as measured in alternating current (AC)); and (iii) is described in at least one of four categories in IRC section 48E(h)(2)(A)(iii).

The latest form for Clean Electricity Low-Income Communities Bonus Credit Amount Program expires 2028-01-31 and can be found here.