Treasury Proposes Guidance on Low-Income Bonus Tax Credit (2)

The IRS and Treasury released proposed regulations Friday on bonus tax credits for clean energy projects in low-income communities.

The clean electricity low-income communities bonus tax credit program builds on an existing program that was created by the Biden administration’s 2022 tax-and-climate law to encourage the shift away from fossil fuels.

It increases tax breaks for projects in or for low-income communities, on tribal lands, or within affordable housing.

“Incentives to develop clean power in communities that have been overlooked and left out for too long will drive investment and create opportunity, helping ensure that the growth of the clean ...