 Deadline Approaching for DOE's Low-Income Adder to Help Fund Solar Panels on HUD Multifamily Properties
The Low-Income Communities Bonus Credit Program, administered by the Department of Energy (DOE) and the Department of the Treasury, promotes cost-saving solar or wind investments in low-income communities, on Indian land, as part of affordable housing developments, and for projects that benefit low-income households. The Low-Income Communities Bonus Credit (also referred to as the “Low-Income or EJ Adder”), created through the Inflation Reduction Act (IRA), supplements the existing Clean Electricity Investment Tax Credit (ITC). The standard ITC provides owners with a base credit of up to 30% of the cost of a renewable energy project. For qualifying projects, the Low-Income Adder can add up to 20 percentage points to the base credit, funding up to 50% of a project. If a project qualifies for additional ITC bonuses, up to 70% of the solar facility costs can be funded.
Earlier this year, HUD’s Office of Multifamily Housing Programs launched a new series of recordings to help owners of HUD-assisted multifamily housing properties and other stakeholders apply for this credit under Category 3 (Qualified Low-Income Residential Project), as most HUD-assisted and public housing are considered eligible covered housing under Category 3 in the 2024 Program Year.
This week, DOE and Treasury announced upcoming application cut-off dates for Program Year 2024.
Owners working on applications or who are planning on resubmitting a rejected application in 2024 must submit them before these deadlines or wait until the 2025 Program Year. Please send any questions related to this program to assetmanagementpolicy@hud.gov with the word ‘SOLAR’ in the subject line.
 Additional information forthcoming regarding the 2025 application opening for the Low-Income Adder. DOE has proposed new rules for the Low-Income Adder to take effect in 2025 and public comments can be submitted here until tomorrow. October 3, 2024, at 11:59 pm ET.
Disclaimer: The information provided in this email or HUD’s guidance materials on this topic should not be considered tax advice or tax filing support. Please consult a tax professional, accountant, or attorney if you need tax-related assistance.
|
