SECTION 4. DESIGN AND

IMPLEMENTATION OF LOW-INCOME COMMUNITIES BONUS CREDIT PROGRAM

.01 In general . Consistent with the stat­ utory references in § 48(e) to low-income communities and environmental justice as well as the statute’s four categories, the allocation program’s broad goals are to in­ crease adoption of and access to renewable energy facilities in low-income and other communities with environmental justice concerns; encourage new market partic­ ipants; and provide social and economic benefits to individuals and communities that have been historically overburdened with pollution, adverse human health or environmental effects, and marginalized from economic opportunities.

.02 Facility Category Allocations . For calendar year 2023, the total annu­

2 Section 13702(a) of the IRA also enacted § 48E(h), which generally provides for a program similar to the Low-Income Communities Bonus Credit Program for calendar years after 2024. Section 48E(i) directs the Secretary to issue guidance regarding the implementation of § 48E not later than January 1, 2025.

March 6, 2023 506 Bulletin No. 2023–10

al Capacity Limitation of 1.8 gigawatts of direct current capacity will be divid­

ed among the four categories described in section 3. The allocation of Capacity

Limitation reserved for each facility cate­ gory for calendar year 2023 is as follows:

See section 4.04 of this notice (relating to allocations of excess Capacity Limitation reserved for categories). As described in section 2.07(2) of this notice, if the annu­ al Capacity Limitation for calendar year 2023 exceeds the aggregate amount allo­ cated for calendar year 2023, the excess will be carried forward to calendar year 2024 pursuant to § 48(e)(4)(D). .03 Additional Criteria . To further the overall program goals, the program will incorporate additional criteria in determining how to allocate the Capac­ ity Limitation reserved for each facili­ ty category among eligible applicants. These criteria may include a focus on facilities that are (i) owned or developed by community-based organizations and mission-driven entities, (ii) have an im­ pact on encouraging new market partici­ pants, (iii) provide substantial benefits to low-income communities and individuals marginalized from economic opportu­ nities, and (iv) have a higher degree of commercial readiness. The forthcoming guidance will fully describe these addi­ tional criteria.

.04 Allocation Process . If selected ap­ plications for facilities with a collective total megawatt nameplate capacity exceed the Capacity Limitation reserved for each category, then a lottery or other processes may be used to allocate the Capacity Lim­ itation to applicants. In the event a facility category has excess Capacity Limitation, such excess may be reallocated between the categories to maximize 2023 calendar year allocations.

.05 Placed in Service Prior to Alloca- tion Award . Facilities placed in service prior to being awarded an allocation of Capacity Limitation are not eligible to re­ ceive an allocation.

.06 Eligible Applicant . Only the owner of a facility may apply for an allocation of Capacity Limitation. For each facility owned by an applicant, the applicant may apply for an allocation of Capacity Lim­ itation in only one category for calendar year 2023. Applicants that do not receive an allocation of Capacity Limitation will be permitted to apply for future alloca­ tions after calendar year 2023. There will be no waitlist created from calendar year 2023 applications that did not receive an allocation of Capacity Limitation.

.07 Phased Approach . Applications will be accepted in a phased approach for calendar year 2023, during 60-day application windows. First, the Treasury Department and IRS anticipate that ap­ plications will be accepted for Category 3 facilities, as defined in section 3.03 of this notice, and Category 4 facilities, as defined in section 3.04 of this notice, in the third calendar quarter of 2023. Next, the Treasury Department and IRS antici­ pate that applications will be accepted for Category 1 facilities, as defined in section 3.01 of this notice, and Category 2 facili­ ties, as defined in section 3.02 of this no­ tice, thereafter. Forthcoming guidance on the application process and facility eligi­ bility for all categories will be provided.

.08 Program Administration . The De­ partment of Energy (DOE) will provide administration services for the Low-In­ come Communities Bonus Credit Pro­ gram. DOE will review the applications for statutory eligibility and additional criteria as will be set out in forthcoming guidance and will provide recommenda­ tions to the IRS regarding the selection of applications for an allocation of Capaci­ ty Limitation. DOE will also perform the lottery or other process for allocation, de­

scribed in section 4.04 of this notice, as needed. Based on DOE’s recommendation and the process for allocation, described in section 4.04 of this notice, the IRS will accept or reject the applicant’s request for an allocation of Capacity Limitation and notify the applicant of its decision. An ac­ ceptance notification will state the amount of Capacity Limitation allocated to the applicant. The amount of Capacity Lim­ itation allocated will not exceed the name­ plate capacity of the facility (as measured in direct current) and will not be prorated. As required by § 48(e)(4)(E), applicants have four years from the date of the ac­ ceptance notification to place the property in service.

.09 Effect of an Allocation . The alloca­ tion of an amount of Capacity Limitation by the IRS under the Low-Income Com­ munities Bonus Credit Program is not a determination that the facility will qualify for the § 48(e) Increase or the § 48 cred­ it generally. This notice does not alter the rules regarding the determination and el­ igibility to claim a § 48 credit, including any § 48(e) Increase in energy percentage attributable to the Low-Income Commu­ nities Bonus Credit Program.