 HUD Supports Owners Interested in New Resource to Fund 50% of Solar Project Costs
HUD’s Office of Multifamily Housing Programs has launched a new video, as part of its series of recordings to help owners of HUD-assisted multifamily housing properties as well as other stakeholders better understand a new tax credit program that can help fund 50% of solar project costs at Federally-assisted residential properties. This recording, co-hosted by HUD’s Office of Public and Indian Housing, provides a 20-minute overview of the basic requirements of the program and describes why multifamily owners, PHA’s, tribes, and communities should look into this unique and new opportunity.
The Low-Income Communities Bonus Credit Program, administered by the Department of Energy (DOE), promotes cost-saving solar or wind investments in low-income communities, on Indian land, as part of affordable housing developments, and benefitting low-income households. The Low-Income Communities Bonus Credit supplements the existing Clean Electricity Investment Tax Credit (ITC) (sometimes referred to as “48E”). The standard 48E credit provides owners with a base credit of up to 30% of the cost of a renewable energy project. In particular, the Low-Income Communities Bonus Credit (also referred to as the “Low-Income or EJ Adder”) can add 20 percentage points to the base credit for solar or wind installations at low-income residential buildings considered eligible covered housing under Category 3 (Qualified Low-Income Residential Project), which includes most HUD-assisted multifamily housing properties. Therefore, the base ITC, when combined with this bonus, can fund 50% of a residential solar project. If a project qualifies for additional ITC bonuses, an owner can potentially fund up to 70% of the costs of a solar facility.
HUD will be producing additional recordings to add to this ‘playlist’ in order to provide owners and other stakeholders with additional information on this program in the coming months.
Disclaimers: Please note that these recordings and materials represent the views of those participating in the presentation only (HUD and certain stakeholders) and no other Federal entities. Please refer to the official IRS guidance (Revenue Procedure 2024-19 and Treasury Regulations 1.48(e)-1) for complete information on eligibility requirements and the application process. The information provided in these materials should not be considered tax advice or tax filing support. Please consult a tax professional, accountant, or attorney if you need tax-related assistance.
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