SECTION 4. CATEGORY 1 SUBRESERVATIONS

The 700 megawatts of Capacity Limitation reserved for Category 1 Facilities will be subdivided for facilities seeking a Category 1 allocation with

490 megawatts of Capacity Limitation reserved specifically for eligible residential behind the meter (BTM) facilities described in § 1.48(e)-1(i)(2)(ii), including rooftop solar. The remaining 210 megawatts of Capacity Limitation reserved for Category 1 is available for applicants

with front of the meter (FTM) facilities described in § 1.48(e)-1(i)(2)(iii) as well as non-residential BTM facilities that meet the requirements of § 1.48(e)-1(i)(2) (i). As described in § 1.48(e)-1(i)(1), the Treasury Department and the IRS may adjust this initial reservation of capacity in

1 Unless otherwise specified, all “section” or “§” references are to sections of the Code or the Income Tax Regulations (26 CFR part 1).

Bulletin No. 2023–35 655 August 28, 2023

future guidance based on factors such as promoting efficient allocation of Capacity Limitation and allowing like-projects to compete for an allocation.