Notice 2023-17: Guidance on environmental justice solar and wind capacity limitation under section 48(e)

Allocate environmental justice solar and wind capacity limitation

Guidance on environmental justice solar and wind capacity limitation under section 48(e)

The IRS today released an advance version of Notice 2023-17 [PDF 118 KB] establishing the program under section 48(e) to allocate environmental justice solar and wind capacity limitation with respect to certain solar and wind facilities placed in service in connection with low-income communities.

Today’s notice also provides initial program guidance for potential applicants for allocations of calendar year 2023 capacity limitation. This initial guidance provides the general eligibility requirements, a description of the four statutory facility categories for which an eligible facility may request an allocation, amounts of capacity limitation reserved for each facility category, a general description of the program design and goals, the application review process, and the proposed timeline for opening two 60-day application periods in 2023 based on project categories.

According to a related IRS release—IR-2023-26 (February 13, 2023)—the IRS will issue additional program guidance outlining specific application procedures, applicable definitions, and other information necessary to submit an application.


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