New IRS Guidance for Energy Tax Credits: Energy Communities, Low-Income Communities, and Section 48C

Qualified Wind and Solar Projects, Placed-in-Service Considerations, Capacity Limitation, Applications for Capacity Allocation

Note: CPE credit is not offered on this program

Recording of a 90-minute premium CLE video webinar with Q&A

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Conducted on Wednesday, April 26, 2023

Recorded event now available

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Course Materials

This CLE webinar will provide attorneys instruction on key components of recent IRS guidance for the energy community adder, the low-income community adder, and Section 48C tax credits, including how the guidance impacts renewable energy investment, development, and production. The panel will discuss what projects are potentially eligible for the energy community adder, recently issued guidance under Notice 2023-18 related to the low-income community adder, applying for an allocation of the Section 48C credit, and other key items regarding energy tax credits.


The Inflation Reduction Act of 2022 (IRA) created several new tax incentives to enhance the development of clean energy projects. Noteworthy changes include bonus tax credits for projects located in energy communities or low-income communities and a significant expansion of Section 48C tax credit allocations.

The most recent development on these incentives happened just a few weeks ago, when on April 4 Treasury the IRS issued Notice 2023-29, providing long-awaited guidance on the up to 10 percent additional investment tax credit (ITC) or production tax credit (PTC) for a qualifying facility, project or storage technology located in an energy community (Energy Community Bonus Credit). It is crucial to understand what constitutes an energy community under each of the three possible categories: (i) the brownfield site category; (ii) the statistical area category; or (iii) the coal mine or coal generating unit closure category. Our panelists will explain the rules that Treasury and the IRS intend to include in proposed regulations for determining whether a project is located in an energy community, describe safe harbors that taxpayers can rely on now and discuss some of the market implications of Notice 2023-29 and remaining unanswered questions.

Another recent development is related to the significant low-income community bonus credits of a 10 or 20 percent additional Section 48 ITC for qualified solar and wind facilities located within specified low-income communities or residential developments or on Indian land (Low-Income Bonus Credit). Importantly, the Low-Income Bonus Credit is only available to a qualified wind or solar project located in a specified low-income community or development or on Indian land if the project owner applied for and received an allocation of an environmental justice solar and wind capacity limitation. Treasury and the IRS recently released Notice 2023-17, establishing the Allocation Program and providing some initial guidance regarding the application process, determinations regarding which projects receive Capacity Allocations, rules on placed in service timing and other requirements to be eligible to claim the increased ITC. Our panel will describe the guidance and requirements under Section 48(e) to assist with navigating the complex process to obtain the Low-Income Bonus Credit.

The IRA expanded the 30 percent tax credit for investments in a “qualified advanced energy project” under Section 48C. The panel will discuss what projects are potentially eligible for the Section 48C tax credit, recently issued guidance under Notice 2023-18, applying for an allocation of the Section 48C tax credit, and other key items.

Listen as our panel discusses what projects are eligible under Section 48C, applying for an allocation of the credit, recent IRS guidance for low-income communities, new green energy tax incentives and requirements under the IRA, and other key items regarding energy tax credits.



  1. Overview of energy tax credits
  2. Energy Community Bonus Credit
    1. What is it?
    2. Three Categories of Energy Communities
    3. Notice 2023-29 and Proposed Regulations to Determine Eligibility
    4. Implications of Notice 2023-29 and Open Issues
  3. Qualified wind and solar projects
    1. What is it?
    2. Definition of "low-income community"
    3. Allocation of the Capacity Limitations
    4. Applications for allocation of Capacity Limitation
  4. Section 48C Tax Credits
    1. History of the advanced energy property credit program
    2. Revisions to the program under the IRA
    3. Allocation
    4. Qualifying Property/Projects
    5. Prevailing Wage and Apprenticeship Rules
    6. Application Timeline and Process


The panel will discuss these and other key issues:

  • Overview of energy tax credits under current tax law
  • What constitutes an energy community and what nuances apply with respect to determining if your facility is considered located within one?
  • Does a taxpayer need any supporting documents in order to claim the Energy Community Bonus Credit?
  • What is the effect of IRS Notice 2023-29 on projects placed in service during 2023 prior to the Notice?
  • IRS Notice 2023-17 and key considerations and challenges for clean energy projects
  • Review of the proposed IRS categories, process and timeline for applications
  • Timing and application considerations in light of forthcoming additional guidance


Barakat, Shariff
Shariff N. Barakat

Akin Gump Strauss Hauer & Feld

Mr. Barakat represents clients involved in the acquisition, development and financing of power generation and...  |  Read More

Conyers, Sabrina
Sabrina N. Conyers


Ms. Conyers is a partnership and corporate tax attorney with more than 18 years of experience providing domestic and...  |  Read More

Levin-Nussbaum, Anne
Anne S. Levin-Nussbaum

Ms. Levin-Nussbaum's practice encompasses a broad spectrum of US federal income tax matters, with a particular...  |  Read More

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