The Treasury and IRS have issued proposed regulations (REG-110412-23) providing additional guidance under IRC Sec. 48(e) for applicants in West Palm Beach Florida or other parts of the country investing in certain solar and wind powered electricity generation facilities under the Inflation Reduction Act of 2022. Notice 2023-17 established the Low-Income Communities Bonus Credit Program and provided the initial program guidance for potential applicants from Hollywood Florida or from another state for allocations of the 2023 calendar year capacity limitations. The proposed regulations, which could also be further explained by auditors providing accounting services, outline specific application procedures, allocation criteria, and applicable definitions necessary to submit an application to request a 2023 allocation under the program. The proposed regulations will apply to tax years ending on or after the date the proposed regulations are finalized. The application process will be managed by the Department of Energy. Written or electronic comments on the proposed regulations must be received by 6/30/23. News Release IR 2023-107.
If you need further help from a licensed accounting firm in following through this regulation, don’t hesitate to contact us.
