Updates to the Section 48(e) Program for the 2024 Program Year

New Guidance Issued for Wind and Solar Projects in Low-Income Communities

As the push for renewable energy sources continues to grow, the IRS has issued new guidance for taxpayers pursuing wind and solar projects in eligible low-income communities for the 2024 program year. The recently released Rev. Proc. 2024-19 outlines key changes and requirements for applicants looking to qualify for the program.

Changes from the 2023 Program Year

While the 2024 program year will follow similar procedures to the previous year, there are some important clarifications and updates to be aware of. Categories 1 and 4 now have different Capacity Limitations compared to 2023, and sub-reservations of Category 1 also have new Capacity Limitations. Additionally, there are key instructions for unincorporated entities that have made or will make an election to be excluded from subchapter K, as well as an additional requirement for applicants to establish ownership.

Important Considerations for Taxpayers

Taxpayers interested in participating in the program should carefully review the updated procedural and clarifying guidance provided in Rev. Proc. 2024-19. It is crucial to note that the application window is only open for 30 days, so applicants must stay informed and monitor the Department of Energy webpage for updates on when the program will open.

For more detailed information and personalized advice, taxpayers are encouraged to consult with their tax advisor to ensure they meet all necessary requirements and maximize their chances of qualifying for the program.

Overall, the new guidance aims to streamline the application process and provide clarity for taxpayers seeking to invest in renewable energy projects in low-income communities. By staying informed and following the updated procedures, eligible applicants can take advantage of the benefits offered through the program.