Empowering Clean Energy: US Unveils Tax Credits to Benefit Underserved Communities
Thursday, the US Treasury Department announced that eligible communities with low incomes may receive up to a 20% increase in tax credits for qualified solar and wind energy infrastructure.
By offering tax credits, the Treasury Department, in cooperation with the Internal Revenue Service, intends to attract new market participants into the renewable energy sector.
The government agencies announced final rules and procedural guidance for the program allocating 1,8 gigawatts of capacity via four categories of solar or wind facilities with an aggregate output of fewer than five megawatts on Thursday, according to the Treasury Department.
The IRS stated that it would distribute up to 700 megawatts to facilities in low-income areas, 2000 megawatts to establishments on Indian land, 200 megawatts to federally-subsidized residential structures, and 700 megawatts to facilities where at least fifty percent of the financial benefits of the electrical power produced would go to families with incomes below 200% of the poverty threshold or below 80% of the area median gross income.
The application period will begin in the autumn, and recipients will be selected by the end of the year.
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Inflation Reduction Act Towards Clean Energy Projects
The Inflation Reduction Act, which was signed into law in August of last year, allocated more than $370 billion to reducing energy costs and encouraging private investments in clean energy initiatives.
In June, Treasury and the IRS expanded similar guidance to nonprofits, state and local governments, and indigenous entities. Secretary of the Treasury Janet Yellen described it as a “force multiplier” for advancing a low-carbon economy.
President Joe Biden desires a carbon-free power sector by 2035 and net-zero emissions from vehicles by 2050, at the latest.
After the Environmental Protection Agency suggested strict new limits on emissions from tailpipes and a requirement that over half of new automobiles manufactured in the United States be entirely electrically powered by 2032, he stated early this year new partnerships with ride-sharing companies to increase the use of electric vehicles across the country.
The Energy Department’s monthly market report indicates that renewable energy sources will comprise approximately 25 percent of the grid next year, with solar power accounting for the majority of the growth.
Source: UPIviaMSN
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