Category 4 Demonstration of Financial Benefits statement template

This template will help you submit a Demonstration of Financial Benefits statement for a Category 4 application under the Clean Electricity Low-Income Communities Bonus Credit Amount Program.

Draft statement

Applicants for an allocation under Category 4 must submit a draft Demonstration of Financial Benefits statement as defined in Internal Revenue Code Section 1.48E(h)-1(f)(3). The statement must show that the project will meet the financial benefits requirements based on the expected annual energy produced by the as-built facility when placed in service and during the recapture period under Sections 48E(h)(5) and 1.48E(h)-1(n). The statement must include:

1. A calculation of the total financial benefits of annual electricity production
2. The percent of the total financial benefits provided and/or assigned to qualifying households
3. The bill credit discount rate method used (with cost to participate or no or nominal cost of participation)
4. A calculation of the bill credit discount rate
5. A description of the means of distributing the required benefits to qualifying households

Final statement

The owner must provide a final Demonstration of Financial Benefits statement to satisfy the placed-in-service documentation requirements. The final statement should clarify differences, if any, from the draft Demonstration of Financial Benefits statement submitted during the application process and include: 

1. – v. Same as Draft statement
6. Documentation that the facility is enrolled in the applicable utility tariff, program, or other arrangement used to distribute financial benefits to qualifying households. This is submitted separately from the Demonstration of Financial Benefits statement.

Using the template

This template is a spreadsheet with formulas to perform calculations for your project. You don’t have to use the template to prepare your statement.

Use the "Discount Rate (w cost)" tab if qualifying households incur costs toward participating in a program to receive financial benefits from electricity production from the applicable facility.

Use the "Discount Rate (no cost)" tab if qualifying households do not incur costs toward participating in a program to receive financial benefits from electricity production from the applicable facility.

There are two example tabs that show sample calculations using numbers from the final regulations.

Category 4 Demonstration of Financial Benefits Statement Template XLSX

Related

Clean Electricity Low-Income Communities Bonus Credit Amount Program