Tax Law and News Guidance for solar/wind-powered energy Read the Article Open Share Drawer Share this:Click to share on Twitter (Opens in new window)Click to share on Facebook (Opens in new window)Click to share on LinkedIn (Opens in new window) Written by Intuit Accountants Team Modified Apr 15, 2024 2 min read The U.S. Department of the Treasury and the IRS recently issued Revenue Procedure 2024-19 to provide guidance for owners of certain solar or wind facilities built in connection with low-income communities. The guidance issued provides important clarifying changes to the application and documentation requirements for the 2024 program year. In addition, this revenue procedure provides how the Capacity Limitation for the 2024 program year will be divided across facility categories described and the additional selection criteria application options. The Inflation Reduction Act of 2022 added Section 48(e) to the federal tax law to provide for an increase in the energy investment credit for solar and wind facilities that apply for, and receive, an allocation of environmental justice solar and wind capacity limitation. Taxpayers that receive an allocation and properly place the facility in service may then claim the increased energy investment credit in the year that the facility is placed in service. The final regulations provide definitions and requirements for the program. The regulations state the four project categories under which facilities apply for an allocation, and the increase of either 10% or 20% associated with a project category. Additionally, the regulations: Define financial benefits for the two applicable project categories. Define energy storage technology installed in connection with the solar or wind facility. Define and describe the additional selection criteria for eligible potential applicants. Remind potential applicants that facilities placed in service prior to an allocation are not eligible. Provide the disqualification and credit recapture rules specific to the program. Revenue Procedure 2023-27 provided procedures for applicants for the 2023 program year. With respect to the 2024 program year, today’s guidance supersedes Revenue Procedure 2023-27. The Treasury Department and IRS also released Notice 2023-17 on Feb. 13, 2023, to establish the Low-Income Communities Bonus Credit Program. Notice 2023-17 provided initial guidance for potential applicants seeking allocations of calendar year 2023 environmental justice solar and wind capacity limitation. Previous Post May 2024 tax and compliance deadlines Next Post New regs: Corporate Stock Repurchase Excise Tax Written by Intuit Accountants Team The Intuit® Accountants team provides ProConnect™ Tax, Lacerte® Tax, ProSeries® Tax, and add-on software and services to enable workflow for its customers. Visit us at https://proconnect.intuit.com, or follow us on Twitter @IntuitAccts. More from Intuit Accountants Team Comments are closed. Browse Related Articles Tax Law and News Energy projects for low-income communities Tax Law and News IRS guidance for domestic content bonus credit Tax Law and News IRS clarifies rules for new corporate alt min tax Tax Law and News Wage requirements for enhanced credits/deductions Tax Law and News Guidance issued on employer deferral of withholding and… Tax Law and News IRS Issues Final Sec. 199A Regulations Tax Law and News Guidance issued on tax relief on deductions for food or… Tax Law and News IRS Updates Per-Diem Guidance for Business Travelers an… Tax Law and News Guidance Issued on Deductions for Cooperatives and Thei… Tax Law and News IRS aims to close tax loopholes for wealthy