The Low-Income Communities Bonus Credit increases the amount of energy investment tax credits for eligible solar and wind facilities under Internal Revenue Code Section 48 or 48E. To qualify, the facilities must meet one or more of these criteria: Built in low-income communities Built on Indian land Part of a qualified affordable housing development Part of a qualified low-income economic benefit project The Department of the Treasury and the IRS have partnered with the Department of Energy to administer the program. The Department of Energy reviews applications and makes recommendations to the IRS, which will allocate to up to 1.8 gigawatts (GW) of eligible solar and wind capacity per year. Amount of the bonus credit The bonus credit increases the investment tax credit for qualified solar and wind energy facilities with net output of less than 5 megawatts (MW) by 10% to 20%. A 10% increase is available to eligible solar and wind facilities that are installed in low-income communities or on Indian land. A 20% increase is available to eligible solar and wind facilities that are part of a qualified low-income residential building or a qualified low-income economic benefit project. 2024 capacity limits The Low-Income Communities Bonus Credit Program annual capacity limit is divided across each facility category for the 2024 program year, plus any carried over unallocated capacity limit from the 2023 program year. Low-Income Communities Bonus Credit Program 2024 capacity limits Category 1: Located in a low-income community 800 MW are available to facilities located in low-income communities. Category or sub-reservation Total 2024 capacity available including 2023 rollover 1a: Eligible residential behind-the-meter (BTM) 250 MW 1b: Eligible residential behind-the-meter (BTM) – additional selection criteria 250 MW 1c: Other facilities 100 MW 1d: Other facilities – additional selection criteria 200 MW Category 2: Located on Indian land 200 MW are available to facilities located on Indian lands. Category or sub-reservation Total 2024 capacity available including 2023 rollover 2a: Located on Indian land 100 MW 2b: Located on Indian land – additional selection criteria 100 MW Category 3: Qualified low-income residential building project 224.8 MW are available to facilities that are part of federally-subsidized residential buildings. Category or sub-reservation Total 2024 capacity available including 2023 rollover 3a: Qualified low-income residential building project 100 MW 3b: Qualified low-income residential building project – additional selection criteria 124.8 MW Category 4: Qualified low-income economic benefit project 900 megawatts are available to facilities where at least 50% of financial benefits of the electricity produced go to households with incomes below 200% of the poverty line or below 80% of area median gross income. Category or sub-reservation Total 2024 capacity available including 2023 rollover 4a: Low-income economic benefit project 400 MW 4b: Low-income economic benefit project – additional selection criteria 500 MW For 2024, at least 50% of the capacity of each category will be reserved for projects meeting certain ownership or geographic selection criteria as outlined in the Final Regulations and Revenue Procedure. Applicants must submit information for each facility for which they are seeking an allocation. Applications will require information such as the applicable category, ownership, location, facility size/capacity, whether the applicant or facility meet additional selection criteria, and other information. Applicants will complete a series of attestations provided in the online portal and upload certain documentation (to demonstrate project maturity). Each individual completing an application on behalf of their organization will need a Login.gov account in order to complete an application. How to apply Applications are closed for the 2024 program year. You can only review or update existing applications right now. Check back to submit an application for the 2025 program year. Review or manage an existing application Guidance Note: These items may contain information that has been superseded by newer guidance. NPRM: Clean Electricity Low-Income Communities Bonus Credit Amount Program Announcement 2024-25, Low-Income Communities Bonus Credit Program Unallocated Environmental Justice Solar and Wind Capacity Limitation Carryover from the 2023 Program Year to the 2024 Program Year Final Regulations: Additional Guidance on Low-Income Communities Bonus Credit Program (Aug. 20, 2023) Revenue Procedure 2023-27 (Aug. 10, 2023) Revenue Procedure 2024-19 (March 29, 2024) Notice 2023-17, Initial Guidance Establishing Program to Allocate Environmental Justice Solar and Wind Capacity Limitation Under Section 48(e) (Feb. 13, 2023) Notice 2022-49, Request for Comments on Certain Energy Generation Incentives (Oct. 5, 2022) News releases IR-2024-142, IRS and Treasury issue release capacity limitation carryover amounts for the 2024 program year IR-2024-86, IRS and Treasury issue guidance for solar and wind powered energy facilities in low-income communities under the Inflation Reduction Act IR-2023-145, IRS and Treasury issue guidance for owners of solar and wind powered energy facilities in low-income communities for increased energy credit under the Inflation Reduction Act (Aug. 10, 2023) IR-2023-107, Treasury and IRS provide proposed rules on energy projects for low-income communities (May 31, 2023) IR-2023-26, Treasury and IRS provide guidance on energy projects for low-income communities (Feb. 13, 2023) IR-2022-172, IRS asks for comments on upcoming energy guidance (Oct. 5, 2022) Related Credits and deductions under the Inflation Reduction Act of 2022 FS-2023-21, Increased energy investment credit for solar and wind facilities benefitting low-income communities (Sept. 29, 2023) Applicant User Guide (2024 Program Year) Applicant Checklist (2024 Program Year) Program Capacity Dashboard Frequently Asked Questions (2024 Program Year) Successor-in-Interest Allocation Transfer Request Guide PDF Maps for Category 1 and Geographic Selection Criteria Eligible Covered Housing Programs for Category 3 Household Income Limits for Category 4 See 2024 Section 8 Income Limits table to verify income limits at or below the qualifying income level. (updated 4/1/2024) Reminders for Applicants Forms and publications Form 3468, Investment Credit Webinar The U.S. Department of Energy and Treasury hosts various public webinars about the Program and application process for potential applicants. Links to previous webinar recordings and slides are below. Webinar Recording and Presentation Slides (2024 Program Year) Webinar Recording and Presentation Slides (2023 Program Year) Consumer Disclosure Forms Applicants entering into agreements with consumers as part of a community solar/wind subscription, lease, or power purchase agreement (PPA), must attest that consumer disclosures informing customers of their legal rights and protections have been provided to customers that have signed up and will be provided to future customers, in accordance with program requirements. Applicants are encouraged to use their applicable state-approved disclosure forms where available or may use other forms of similar substance.
