Ann. 2024-25, 2024-25 I.R.B. 1741

This announcement provides the total amount of unallocated environmental justice solar and wind capacity limitation (Capacity Limitation) for the Low-Income Communities Bonus Credit Program (Program) under § 48(e) of the Internal Revenue Code and § 1.48(e)-1 of the Income Tax Regulations that has been carried over from the 2023 Program year to the 2024 Program year. Additionally, this announcement sets forth the distribution of the carried over Capacity Limitation among the facility categories, category 1 sub-reservations, and application options for the 2024 Program year.

Because the annual Capacity Limitation for the 2023 Program year exceeds the amount of Capacity Limitation allocated in that Program year, the excess is carried over to the 2024 Program year and increases the Capacity Limitation available for allocation in the 2024 Program year under § 48(e)(4)(D). The total amount of unallocated Capacity Limitation from the 2023 Program year is 324.785 megawatts (MW). This amount is distributed as follows for the 2024 Program year:

Category, Category 1 sub-reservation, or application option

Carried over Capacity Limitation amount

Category 1: Located in a Low-Income Community, Eligible Residential Behind-the-Meter (BTM)1 Sub-Reservation, Non-Additional Selection Criteria Application Option

50 MW

Category 1: Located in a Low-Income Community, Eligible Residential Behind-the-Meter2 Sub-Reservation, Additional Selection Criteria Application Option

50 MW

Category 1: Located in a Low-Income Community, Other Facilities3 Sub-Reservation, Additional Selection Criteria Application Option

100 MW

Category 3: Qualified Low-Income Residential Building Project, Additional Selection Criteria Application Option

24.785 MW

Category 4: Low-Income Economic Benefit Project, Additional Selection Criteria Application Option

100 MW

TOTAL

324.785 MW

The above table reflects only the distribution of the carried over unallocated Capacity Limitation for the 2023 Program year among the facility categories, category 1 sub-reservations, and application options to which unallocated 2023 Program year Capacity Limitation has been assigned in the 2024 Program year. Rev. Proc. 2024-19, 2024-16 I.R.B. 899, provided the distribution for the 2024 Program year of the 1.8 gigawatts of annual Capacity Limitation.

DRAFTING INFORMATION

The principal author of this announcement is the Office of Associate Chief Counsel (Passthroughs & Special Industries). However, other personnel from the Treasury Department and the IRS participated in its development. For further information regarding this announcement, call the energy security guidance contact number at (202) 317-5254 (not a toll-free number).

1 Eligible residential BTM facilities are described in § 1.48(e)-1(i)(2)(ii).

2 Eligible residential BTM facilities are described in § 1.48(e)-1(i)(2)(ii).

3 Other facilities are front of the meter facilities described in § 1.48(e)-1(i)(2)(iii) as well as non-residential BTM facilities that meet the requirements of § 1.48(e)-1(i)(2)(i).