US to provide investment tax credit for qualified solar, wind facilities

By Ovunc Kutlu

ISTANBUL (AA) - The US Treasury Department and the Internal Revenue Service released final rules Thursday that will provide up to a 20-percentage point boost to the investment tax credit for qualified solar or wind facilities in low-income communities.

"The goals of the program are to increase clean energy facilities in low-income communities, encourage new market participants, and benefit individuals and communities that have experienced adverse health or environmental effects or lacked economic opportunities," the Treasury Department said in a statement.

The Low-Income Communities Bonus Credit program, through President Joe Biden's Inflation Reduction Act, will allocate 1.8 gigawatts capacity across four categories of solar or wind facilities with maximum output of less than five megawatts.

"This new bonus incentive through the Inflation Reduction Act will drive investment to underserved communities to ensure they benefit from lower energy costs and reduced pollution and health hazards," said Deputy Secretary of the Treasury Wally Adeyemo.

The application process for all categories in the program will open in the fall, and awards will start to be made by the end of 2023.