Applications to Open Soon for Low-Income Bonus Energy Tax Credit

Companies that want a bonus tax credit for solar and wind facilities located in low-income communities can begin applying next month, Treasury announced Wednesday.

Democrats’ Inflation Reduction Act of 2022 created a bonus credit allowing taxpayers to receive tax-credit enhancements of 10 or 20 percentage points for certain energy projects in low-income communities.

The application process will open Oct. 19 and taxpayers will be awarded allocations starting at the end of the year.

• The application will be in one phase instead of two to get the program up and running as quickly as possible, a Treasury official said last month. ...