Treasury Finalizes Rules for Low-Income Bonus Energy Credit (1)

The IRS and Treasury Department finalized rules Wednesday on bonus tax credits for clean energy projects in low-income communities.

The rules (TD 10025, RIN: 1545-BR26) outline the eligibility requirements for projects to receive the credit. The credit takes effect in 2025 and builds on an existing program created by the Biden administration’s 2022 tax-and-climate law to encourage the shift away from fossil fuels.

Treasury awards companies allocations of capacity limitation on an annual basis that increases the value of the 48E clean electricity investment credit. The final rules give more details on the allocation process, requirements related to ...