Treasury Department, IRS, propose expansion of clean energy tax credits

Aug. 30 (UPI) -- The Treasury Department and the IRS Friday presented proposed rules that would expand clean energy tax credits to low-income communities.

The proposed rules would create a new Low-Income Communities Bonus Credit Program, a bonus tax credit within the Clean Electricity Low-Income Communities Bonus Credit Program created by the Inflation Reduction Act.

"The Low-Income Communities Bonus Credit Program is the most significant tax incentive in U.S. history to promote clean energy investments in low-income communities, on Tribal land, and within affordable housing," said U.S. Deputy Energy Secretary David M. Turk in a statement.

The existing program uses tax credits to promote clean-energy investments in low-income communities.

The new rules would make clean energy tax credits available for other technologies, like hydropower and geothermal, in addition to wind and solar.

Turk said by expanding the current program to more kinds of clean energy technologies, it will deliver "a more equitable energy transition."

"The proposed rules announced today mark a major step forward for the implementation of the Biden-Harris Administration's Investing in America agenda, lowering costs for underserved communities and households and helping ensure that they share in the benefits of the growth of the clean energy economy," The Treasury Department said.

Senior Advisor to the President for International Climate Policy John Podesta said the proposed rules will help advance the White House's efforts to improve access to clean energy.

President Biden and Vice President Harris entered office three and a half years ago with a vision to make clean energy affordable and accessible to every American," said Podesta. "The Low-Income Communities Bonus Credit is bringing that vision to life by incentivizing new investment in communities that have been left out and left behind."