The Low-Income Communities Bonus Credit Program offers additional tax credits for solar and wind facilities that meet specific eligibility criteria, falling into four categories:
Eligibility Criteria
- Category 1: Located in a Low-Income Community
- The facility must be in a census tract with at least a 20% poverty rate.
- The median family income must be 80% or less of the statewide or metropolitan area median family income.
- Category 2: Located on Indian Land
- Must be situated on land defined as “Indian land” under the Energy Policy Act of 1992.
- Category 3: Qualified Low-Income Residential Building Project
- The facility must be installed in residential buildings participating in specific federal housing programs.
- Financial benefits from the facility must be allocated among the building’s occupants fairly.
- Category 4: Qualified Low-Income Economic Benefit Project
- At least 50% of the facility’s output must benefit households with incomes less than 200% of the poverty line or 80% of area median gross income.
- Each qualifying household must receive a bill credit discount rate of at least 20%.
Bonus Credit Amounts
- Categories 1 & 2: Receive a 10% bonus credit.
- Categories 3 & 4: Receive a 20% bonus credit.
Application Process
Applications are submitted through the DOE Applicant Portal. The process includes two steps: applying for allocation and reporting when the facility is placed in service.
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