Consumers installing fueling equipment in qualifying areas are eligible for a tax credit worth 30% of the cost, up to a value of $100,000. Projects that are subject to an allowance for depreciation (i.e. for business or investment use) must meet prevailing wage and apprenticeship requirements to receive the full 30% tax credit, and those that don’t are eligible for a 6% tax credit. Bi-directional charging equipment is included in this credit, and while equipment, make ready, and installation costs are considered covered expenses, permitting and inspection fees are not.

Consumers in qualifying areas installing EV charging equipment or alternative fueling equipment in their home are eligible for a tax credit equal to the smaller of 30% of the property’s cost or $1,000. This is not subject to prevailing wage and apprenticeship requirements.

This credit may be stackable with incentives from your state or local utility provider, and you can check with them to confirm.

For more information see here.

Justice40 is not a single pot of money, but rather changes to ensure government is distributing benefits of climate, clean energy, affordable and sustainable housing, clean water, and other investments equitably. Locations identified as Justice40 communities are to receive 40% of the benefits of these investments. As of the release of the Phase One Environmental Justice Scorecard, over $92 billion has been made available to Justice40 covered programs, which include both new and existing government initiatives.

The programs covered by the initiative include everything from assistance managing floodplains to funding for electric school buses and include formula funding as well as competitive grants. To determine what funding opportunities may meet your location’s needs, the Climate and Economic Justice Screening Tool (CEJST) shows you the indicators that qualify your location as a Justice40 community. The indicators span categories of climate vulnerability, energy, health, housing, legacy pollution, transportation, water and wastewater, and workforce development. Importantly, while CEJST identifies communities as disadvantaged or not, it does not consider cumulative burden or whether a community meets the threshold of need across multiple indicators. The White House has indicated agencies may use their own data and metrics to prioritize specific areas identified by CEJST in their funding decisions

For more information on Justice40 see here.

On October 19, 2023, Treasury opened the application period for all four categories of the Low-Income Communities Bonus Credit Program, with priority given for applications received within the first 30 days.

This location falls within a defined low-income local community or federally recognized tribal land. Qualifying solar and wind projects sited here are eligible for a 10-percentage point bonus credit on the baseline ITC. Solar and wind projects anywhere in the country that are installed on affordable housing buildings, or that direct at least half their financial benefits to low-income households, are eligible for a 20-percentage point bonus credit. Energy storage technologies installed in connection with these projects are considered part of the facility.

This bonus is stackable. For instance, under the ITC (48E, baseline 30% with prevailing wage and apprenticeship requirements), a solar project sited in an energy community (+10%), constructed using steel, iron, and manufactured components that meet domestic manufacturing requirements (+10%), on an affordable housing building (+20%) could be eligible for tax credits covering 70% of project costs.

To receive this tax credit you must apply for it, and the IRS will approve a maximum of 1.8 GW of capacity a year with unused capacity rolling over into the next. Of this, for 2023 700 MW is reserved for projects located in low-income communities, 200 MW for projects located on Indian Land, 200 MW for Low Income Residential Buildings, and the remaining 700 MW for Low-Income Economic Benefit Projects. Of the 700 MW reserved for projects sited in low-income communities, to ensure these funds mostly serve residences and consumers rather than businesses, the IRS further reserves 490 MW for residential behind the meter facilities like rooftop solar. Finally, facilities that both promote community ownership of energy assets and are sited in either places facing persistent poverty or Justice40 communities facing poor air quality or high energy burdens priority for allocation in each category. At least 50% of the allocation in each category will be reserved for projects that accomplish at least one of the two.

For more information see here.

Clean energy projects and facilities sited here are eligible for a bonus of 10% for the PTC and up to 10 percentage points for the ITC. Qualifying clean energy projects include solar and wind technologies, municipal solid waste projects, geothermal electricity technologies, and tidal power. The ITC also covers energy storage technologies, microgrid controllers, fuel cells, geothermal (heat pump and direct use), combined heat & power, microturbines, and interconnection costs, while the PTC covers biomass, landfill gas, hydroelectric, marine and hydrokinetic projects. ITC projects that don’t meet prevailing wage and apprenticeship requirements only receive a 2-percentage point increase.

This bonus is stackable. For instance, under the PTC (45Y, baseline 2.75¢/kWh with prevailing wage and apprenticeship requirements for projects over 1 MW, adjusted for inflation) a clean energy project sited in an energy community (+10% or .30¢/kWh), constructed using steel, iron, or manufactured components that meet domestic manufacturing requirements (+10% or .30¢/kWh) could be eligible for tax credits worth 3.35¢/kWh.

For more information see here.

Justice 40

The Justice 40 initiative was created by EO14008 to deliver 40% of the benefits of climate and clean energy funding to disadvantaged communities. Eligible communities are identified using the Climate and Economic Justice Screening tool. Over 400 federal government programs across 26 agencies — many of them established or funded through the IRA — are covered by Justice40, offering funding for clean energy, clean transit, affordable housing, addressing legacy pollution, mitigating and adapting to climate change, wastewater infrastructure, clean water, workforce training and development, and energy efficiency. The full list of covered programs will be updated regularly and can be found here.

ITC and PTC

The Investment Tax Credit (§48 and §48E) and Production Tax Credit (§45 and §45Y) of the IRA seek to promote clean energy development by offering tax credits for the installation and operation of a host of clean energy technologies. Through the Direct Pay mechanism, these credits have also been made accessible to governments, school districts, public utility districts, and other entities that don’t pay taxes. While the IRA specifies a baseline value for these credits, projects can access bonus tax credits if they meet certain criteria. Two IRA bonus incentives offer enhancements for these tax credits based on where these projects are located: