September 23, 2023

Volume XIII, Number 266


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September 20, 2023

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IRS Issues Proposed Regulations for Energy Projects Located in Low-Income Communities

The Internal Revenue Service issued proposed regulations on May 31, 2023, for the Low-Income Communities Bonus Credit Program under Section 48(e) of the Internal Revenue Code. The proposed regulations provide more details on the procedures and criteria of the application process for entities to be able to receive increased U.S. federal income tax credits for solar and wind facilities in low-income communities.

The proposed regulations provide definitions of key terms related to the program. They also address the reservations of the capacity limitation allocation for certain applicants, provide application materials necessary to demonstrate a project’s viability, provide necessary documentation to be submitted when the project is placed in service, and provide guidance on post-allocation compliance including disqualification and recapture of the credits. The IRS requested comments on specific definitions and requirements that will be considered in the next release of program guidance. Comments to the proposed regulations are requested by June 30, 2023.

Previously, the IRS issued Notice 2023-17, summarized in our GT Alert, which established the Low-Income Communities Bonus Credit Program for applicants seeking an allocation of the environmental justice solar and wind capacity limitation for the 2023 calendar year.

©2023 Greenberg Traurig, LLP. All rights reserved. National Law Review, Volume XIII, Number 152

About this Author


John Eliason, Global Co-Head of Energy Project Finance, is a highly respected attorney in the field of tax equity. He has spent more than 20 years representing tax equity investors and developers, with a focus on renewable and alternative energy for the last decade. John has played a pivotal role in the advancement of the renewable energy market. His clients include major financial institutions (tax equity investors and infrastructure funds), solar, wind, and alternative energy developers, as well as leading equipment manufacturers.

John focuses his practice on advising tax equity...

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Margaret Weil Financial Lawyer Greenberg Traurig Law Firm
Of Counsel

Margaret J. Weil focuses her practice on tax planning and advice for private equity transactions, mergers and acquisitions, financings, and other commercial transactions. She advises domestic and international corporations, partnerships, and high-net-worth individuals on a broad range of tax matters, including domestic and cross-border M&A, securities offerings, restructurings, tax compliance, and the federal, state, and international tax developments that affect their transactions and ongoing business operations.


  • Mergers and acquisitions

Braxton T. Roam Associate Greenberg Traurig, LLP

Braxton T. Roam focuses his practice on energy project finance and taxation. Braxton advises tax equity investors, lenders, developers, and sponsors in the renewable energy space—particularly those relating to wind, solar, biomass, and other emerging technologies—with structuring and closing transactions that rely on federal and state tax incentives. His experience includes matters involving Internal Revenue Code section 48 Investment Tax Credits (ITC), section 45 Production Tax Credits (PTC), section 45Q Carbon Oxide Sequestration Credits, section 1400Z Qualified...


Ben Almy utilizes deep in-house tax experience to advise his clients. In his managerial role at AES Clean Energy, he led tax analysis on utility-scale and distributed generation renewable project acquisitions – particularly relating to solar, wind, stand-alone storage, and green hydrogen projects. His experience includes drafting and reviewing commercial contracts for project acquisitions, equipment procurement, construction, and partnership formation, with a focus on tax provisions. He advises on federal and state tax incentives, state and local tax compliance, and tax-efficient...