IRS reopens application portal for bonus credit applications

The IRS on May 28 opened the application process for taxpayers to apply for a 2024 allocation of enhanced credit rates for solar and wind projects built in certain geographic locations or benefiting specific low-income populations.

The deadline for applying in the initial 30-day period will be 11:59 p.m. ET on June 27. If any 2024 allocation is left over, the Department of Energy will offer additional 30-day enrollment periods on a rolling basis.

The Low-Income Communities Bonus Credit Program offers an increased credit of either 10% or 20% for solar or wind projects under 5 MW in connection with certain low-income communities. Unlike other bonus credit amounts, taxpayers must apply to receive a Section 48(c) allocation and funding is capped at 1.8 GW worth of projects annually for 2023 and 2024 (though there is some rollover capacity available from 2023 available in the 2024 allocation).

The IRS recently updated its guidance (Rev. Proc. 2024-19) for applying for a 2024 allocation (see our prior story).

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Contacts:

David E. Sites

National Managing Principal,
Washington National Tax Office and International Tax Solutions

Grant Thornton Advisors LLC

David leads the firm's International Tax practice, which focuses on global tax planning, cross border merger and acquisition structuring, and working with global organizations in a variety of other international tax areas.

Washington DC, Washington DC

+1 202 861 4104