⚡Final Regulations for Clean Electricity Investment Credits Are Here
Guidance on Clean Electricity Low-Income Communities Bonus Credit Amount Program
Summary
This document contains final regulations concerning the program to allocate clean electricity low-income communities bonus credit amounts established pursuant to the Inflation Reduction Act of 2022 for calendar years 2025 and succeeding years. Applicants investing in certain clean electricity generation facilities that produce electricity without combustion and gasification may apply for an allocation of capacity limitation to increase the amount of the clean electricity investment credit for the taxable year in which the facility is placed in service. This document provides definitions and requirements that are applicable for the program. The final regulations affect taxpayers seeking allocations of capacity limitation to claim an increased clean electricity investment credit.
Agencies
- Treasury Department
- Internal Revenue Service
Business Impact
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The regulations provide substantial financial incentives for businesses investing in clean electricity generation facilities, including increased investment credits through the Capacity Limitation allocation. This affects businesses in low-income communities aiming for tax credits, as detailed in the regulatory provisions under sections 48E(h) and its requirements.