Bloomberg Law
March 16, 2023, 8:45 AM

Industry Warns Energy Tax Guidance Threatens Speedy Investment

Naomi Jagoda
Naomi Jagoda
Senior Reporter

Major solar industry players are warning new guidance for the tax-and-climate law’s bonus credit for facilities in low-income communities could delay some projects already in the works.

Under the Inflation Reduction Act, solar and wind projects can get a tax-credit increase of 10 percentage points if they are located in low-income communities or tribal land, or a 20 percentage point increase if they provide most of their financial benefits to lower-income households.

The program has an annual capacity limitation for projects of 1.8 gigawatts of direct current capacity, and initial guidance released last month by the Treasury Department and IRS ...