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

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

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

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

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.

News releases

Related

Forms and publications

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.

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.