Energy Credits for Low-Income Taxpayers Should Be Easy to Get

The IRS is set to unveil the application portal for another clean energy initiative under the Inflation Reduction Act in the coming weeks. The Low-Income Communities Bonus Credit provides an additional bonus on top of existing clean-energy credits for low-income and tribal communities and low-income households that invest in qualifying projects.

The enhancements can be worth 10 to 20 percentage points for qualified energy projects and can help defray a substantial portion of the cost inherent in spooling up a solar or wind energy installation in underserved communities. However, the initiative has notable limitations, and offsetting the effects of climate ...