Reps. Horsford, Davis, Sánchez, Sewell, Evans, and Gomez Champion Bill to Bring Financial and Environmental Benefits of Solar Energy to Low-Income Individuals, Families, and Communities

WASHINGTON, D.C. — Today, Representative Steven Horsford (D-NV-04) joined with Representative Danny K. Davis (D-IL-07), Representative Linda Sánchez (D-CA-38), Representative Terri A. Sewell (D-AL-07), Representative Dwight Evans (D-PA-03), and Representative Jimmy Gomez (D-CA-34) to champion the Low-Income Housing Renewable Energy Credit Act. This legislation would bring the economic and environmental benefits of solar energy to low-income individuals and communities, using the tax code to advance environmental and economic justice.

Current renewable tax benefits typically remain out of reach for low-income communities, which also experience greater power-generated pollution. Drawing on the success in California of a clean energy program that helps hundreds of thousands of low-income residents in multifamily housing enjoy the cost savings and environmental advantages of solar energy, the bill would provide an enhanced Investment Tax Credit to solar projects benefiting low-income residents. Specifically, under the Low-Income Housing Renewable Energy Credit (LIHREC), a taxpayer would receive an additional 10% credit for solar projects located in a disadvantaged census tract or an additional 20% credit for projects that benefit individuals living in either (a) low-income residential buildings or (b) participating in qualified low-income economic benefit projects where at least 50 percent of the financial benefits of the solar electricity produced goes to households with incomes of less than 200% of the poverty line or 70% area median income.

Using selection criteria that prioritize projects with the greatest health and economic benefits, employment and wages, and engagement with local governments and organizations, the Treasury Secretary will select projects up to an annual capacity limit of 1.8 gigawatts. Estimating approximately $0.40/watt in tax credits beyond the Investment Tax Credit on an average project, LIHREC would help install 18 gigawatts of solar energy to serve approximately 4.5 million low-income households with approximately 13.5 million people over 10 years.

"In Nevada and across the nation, low-income families and communities of color are bearing the brunt of climate change," said Rep. Steven Horsford. "The Low-Income Housing Renewable Energy Credit Act would put solar energy within reach for underserved communities while creating jobs, lowering energy bills, and strengthening our climate resilience. I'm excited to work with Reps. Davis, Sánchez, Sewell, Evans, and Gomez on this important step forward for environmental and economic justice."

"I am proud to champion this new tax credit that will put money in the pockets of low-income people by reducing their electricity costs while making the air they breathe safer," said Rep. Danny Davis. "This credit will incentivize substantial private investment in solar projects within low-income housing and communities. Even more, it will spur job creation of good-paying jobs in the green energy sector. The credit is a smart federal investment that promotes economic and environmental equity by extending clean energy to underserved communities while helping address the climate crisis."

"Low-income families often don't have access to tax benefits for solar and renewable energy, yet their neighborhoods suffer disproportionately from the impacts of power-generated pollution," said Rep. Linda Sánchez. "As we prepare to make major investments in renewable energy, it is critical that everyone who wants to reduce their carbon footprint has access to the same resources, regardless of socio-economic status. This legislation would ensure low-income communities do not lose out on green energy project investment and residents are able to benefit from stabilized affordable housing assets, improved grid resilience, and increased job opportunities in the green sector."

"We know that low-income and minority communities are often most severely impacted by the devastating effects of pollution and climate change," said Rep. Terri Sewell. "Unfortunately, green technologies that harness the power of renewable energy are too often out of reach for these very same communities. By providing tax credits to low-income Americans for solar projects, this bill will make green technologies more accessible for our most vulnerable, advancing environmental justice in Alabama's 7th District and across our nation. As we make critical investments in climate resiliency, we must ensure that equity remains a central focus."

"Philadelphia has seen historic, damaging flooding recently, and this clean-energy tax credit is another way we can fight the climate change that caused it, while bringing the benefits of solar energy to lower-income households in particular -- and creating jobs at the same time," said Rep. Dwight Evans.

"Equitable and sustainable outcomes for our country cannot be secured without a tax code that prioritizes America's working families," said Rep. Jimmy Gomez. "Through this new tax credit, we can do our part to promote the concept of economic and environmental justice while ensuring that low-income individuals and their communities can benefit from the green economy. I'd like to thank my colleagues who joined us in this joint endeavor to uplift our working families and protect our planet."

The Low-Income Housing Renewable Energy Credit Act is supported by over 45 housing, environmental, civil rights, and energy advocates, including: Brightline Defense; Chicago Urban League; EAH Housing; EarthJustice; Environmental Law & Policy Project; Faith in Place Action Fund; GreenLatinos; GRID Alternatives; Illinois Environmental Council; Illinois Solar Energy Association; League of Conservation Voters; NAACP (National Association for the Advancement of Colored People); Sierra Club; Solar One; Stewards of Affordable Housing for the Future; Sunrun; Union of Concerned Scientists; and WE ACT for Environmental Justice.