Treasury and Internal Revenue Service (IRS) issued guidance (Notice 2023-17) (the Notice) establishing a program to provide solar and wind power to certain low-income areas under the Inflation Reduction Act of 2022 (IRA). The Notice implements the Low-Income Communities Bonus Credit program under Sec. 48(e), which adds an additional 20% or 10% credit for clean energy projects that invest in certain facilities located in low-income neighborhoods, tribal lands, areas with federally subsidized housing, and areas where the average income is below 200% of the poverty line.

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