The lottery system for the Low-Income Communities Bonus Credit Program is utilized when the number of applications in a particular category exceeds the available capacity during the initial 30-day application window. Here’s how it works:
- Initial Application Period: All applications submitted within the first 30 days are treated as if they were received simultaneously. If the category is oversubscribed, a lottery is held to determine which projects will receive the bonus credits.
- Prioritization: Before the lottery, applications that meet the Additional Selection Criteria receive priority. These criteria include specific ownership and geographic requirements, such as being located in a Persistent Poverty County or a disadvantaged census tract.
- Lottery Process: After prioritizing applications based on the Additional Selection Criteria, a lottery is conducted among the remaining eligible applications to determine the recipients of the bonus credits.
- First-Come, First-Served Basis Post-Lottery: After the initial 30-day period, any remaining capacity is allocated on a first-come, first-served basis. If a category has unused capacity, it can be reallocated to other categories with higher demand.
- Documentation and Review: The Department of Energy (DOE) reviews applications and makes recommendations to the IRS, which then awards or rejects the applications based on these recommendations.
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