Currently, the Clean Electricity Low-Income Communities Bonus Credit Program provides an increase of up to 20% to the Section 48 investment tax credit for applicable energy projects located in low-income communities or on Indian land. However, as of 2025, energy storage assets will no longer qualify for this bonus credit under proposed rules, which may impact the incentive for energy storage projects in low-income communities.
Additionally, the Energy Community Tax Credit Bonus offers up to a 10% bonus for projects in areas that were heavily reliant on fossil fuels and are now revitalizing their economies, but this does not specifically target energy storage in low-income communities.
For energy storage projects, the absence of specific tax credits after 2025 might challenge their adoption in low-income communities, despite the general incentives available for clean energy investments.
Original article by NenPower, If reposted, please credit the source: https://nenpower.com/blog/are-there-specific-tax-credits-available-for-energy-storage-projects-located-in-low-income-communities/
