The Treasury Department and the Internal Revenue Service (IRS) issued final rules and procedures for new renewable energy tax credits at affordable housing communities. Called the “Low-Income Communities Bonus Credit,” the program provides tax credit incentives for solar and wind facilities in certain communities, including:

• 10 percentage point increase is available to eligible solar and wind facilities that are installed in low-income communities or on Indian land.
• 20 percentage point credit increase is available to eligible solar and wind facilities that are part of, or provide at least 50% of a facility’s total output to, qualifying low-income households.

The Department of Housing and Urban Development (HUD) recently issued guidance clarifying how to navigate these types of projects, including how to distribute the financial benefit to HUD-assisted residents. LeadingAge will keep members updated as the application opens in early fall.