The U.S. Department of the Treasury has released a report detailing the impact of the Inflation Reduction Act’s Low-Income Communities Bonus Credit Program for the 2023 program year. The report highlights $3.5 billion in investments aimed at reducing energy costs for low-income communities and promoting clean energy.
The program has resulted in the installation of over 49,000 solar facilities, generating nearly $270 million worth of clean energy annually in underserved areas. This output is equivalent to the annual electricity use of 200,000 average-sized U.S. households.
“$3.5 billion in public and private investment is flowing into communities that are too often left out and left behind, thanks to Biden-Harris Administration investments in clean energy projects,” said U.S. Deputy Secretary of the Treasury Wally Adeyemo. “These investments are already lowering costs, protecting families from energy price spikes, and creating new opportunities in our clean energy future.”
Key allocations include:
– Over 48,000 residential energy facilities.
– Nearly 100 new facilities on Indian lands.
– Over 800 facilities in affordable housing developments.
– Over 300 community solar projects benefiting low-income households.
The Low-Income Communities Bonus Credit Program was established under Section 48(e) of the Internal Revenue Code to encourage cost-saving clean energy investments in low-income areas and other specified locations. The program saw significant demand with over 54,000 applications requesting more than four times the available capacity for allocation in 2023.
Awards were given based on a rigorous selection process prioritizing projects that offered direct savings to households. These awards concentrated on areas with high energy costs or persistent poverty.
This first-year impact report follows a recent Notice of Proposed Rulemaking to implement a similar program under Section 48E(h), which would extend benefits to additional clean electricity technologies such as hydropower and geothermal.
A virtual public briefing on this report will be hosted by Treasury on Friday, September 6 at 12:30 pm ET.
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