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Low-Income Communities Bonus Credit Program (Clean Electricity Investment Tax Credit)

AFFORDABLE HOUSING MANAGEMENT

Funding Amount

Up to 70% of solar/wind project costs (base 30% ITC + 20% Low-Income Adder + additional bonuses possible)

Deadline

June 27, 2026

80 days left

Grant Type

foundation

Overview

Low-Income Communities Bonus Credit Program

Funder: U.S. Department of Energy (DOE)

Administered by: HUD Office of Multifamily Housing Programs

Program Overview

The Low-Income Communities Bonus Credit Program, also referred to as the "Low-Income or EJ Adder," supplements the existing Clean Electricity Investment Tax Credit (ITC 48E) to promote cost-saving solar or wind investments in low-income communities.

    Funding Details

  • Base ITC Credit: Up to 30% of renewable energy project costs
  • Low-Income Communities Bonus Credit (Adder): Additional 20 percentage points
  • Combined Base + Bonus: 50% of residential solar project costs
  • With Additional Bonuses: Potentially up to 70% of project costs

    Eligible Projects

  • Solar installations
  • Wind installations
  • Low-income residential buildings
  • HUD-assisted multifamily housing properties (most eligible)
  • Eligible covered housing under Category 3: Qualified Low-Income Residential Project
  • Projects on Indian land
  • Projects benefitting low-income households

    Geographic Scope

  • Low-income communities
  • Tribal lands
  • Across the United States

    Application Timeline

  • Initial Application Window 2024: Closed June 27, 2024 (11:59pm ET)
  • Rolling Basis: Applications submitted after initial window evaluated on rolling basis
  • Next Application Window: 2026 program year (dates not yet announced)

    Eligible Applicants

  • HUD-assisted multifamily housing property owners
  • Other eligible organizations per IRS guidance

    Contact Information

  • HUD Office of Multifamily Housing Programs
  • Reference Official IRS Guidance: Revenue Procedure 2024-19 and Treasury Regulations 1.48(e)-1

    Resources Available

  • General Application Tips recording
  • Developing a Draft Benefits Sharing Statement recording
  • Presentations used in recordings available online

    Important Disclaimers

  • These materials represent views of HUD and participating stakeholders only
  • Consult official IRS guidance for complete eligibility and application requirements
  • Information provided is not tax advice; consult tax professional, accountant, or attorney for tax-related assistance

How to Apply

Application Process

Required Materials:

  • Draft Benefits Sharing Statement (required component for Category 3 applications)
  • Application Window:

  • Initial window: 30 days (2024 window closed June 27, 2024)

  • Rolling basis evaluation after initial window closes
  • Resources to Assist:
    1. General Application Tips recording
    2. Draft Benefits Sharing Statement preparation recording
    3. Presentations from recordings (available online)
    4. Recordings feature approved applicants from 2023 sharing their experiences

    Official References:

  • Revenue Procedure 2024-19

  • Treasury Regulations 1.48(e)-1

  • Consult tax professional or attorney for tax advice
  • Focus Areas & Funding Uses

    Fields of Work

    solaraffordable-housingenergy-efficiency

    Categories

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