Clean Electricity Low‑Income Communities Bonus Credit Amount Program

Clean Electricity Low‑Income Communities Bonus Credit Amount Program is sponsored by Internal Revenue Service (IRS). Bonuses for clean electricity projects in low‑income communities via tax credit application; initial window then rolling.

Clean Electricity Low-Income Communities Bonus Credit Amount Program | Internal Revenue Service Access your tax information with an IRS account.

Include Historical Content Include Historical Content Include Historical Content Include Historical Content Business and self-employed Governments and tax-exempt bonds Indian Tribal Governments Apply for an Employer ID Number (EIN) Identity Protection PIN (IP PIN) Bank Account (Direct Pay) Payment Plan (Installment Agreement) Electronic Federal Tax Payment System (EFTPS) Tax Withholding Estimator Where’s my amended return?

Businesses & Self-Employed Earned Income Credit (EITC) Clean Energy and Vehicle Credits POPULAR FORMS & INSTRUCTIONS Fake IRS email or message Clean Electricity Low-Income Communities Bonus Credit Amount Program More In Credits & Deductions Family, dependents and students Clean energy and vehicle credits and deductions Individuals credits and deductions Business credits and deductions Employee Retention Credit Forms for business credits The Clean Electricity Low-Income Communities Bonus Credit Amount Program (Program) is an allocated tax credit program that increases the amount of clean electricity investment tax credits for certain applicable facilities under Internal Revenue Code Section 48E.

For each program year, applicants may apply for an allocation of capacity limitation which is distributed across the following categories: Category 1 : Located in a Low-Income Community Category 2 : Located on Indian Land Category 3 : Qualified Low-Income Residential Building Project Category 4 : Qualified Low-Income Economic Benefit Project The 48E(h) bonus credit increases the 48E Clean Electricity Investment Tax Credit for applicable energy facilities with maximum net output of less than 5 megawatts (MW) by 10% or 20%.

A 10% increase is available to applicable facilities that are located in low-income communities or on Indian land. A 20% increase is available to applicable facilities that are part of a qualified low-income residential building project or a qualified low-income economic benefit project. The Program’s annual capacity limitation of 1.

8 gigawatts is divided across each facility category for the 2026 program year, plus any carried over unallocated capacity limitation from the 2025 program year. For the 2026 Program year, the capacity limitation is distributed across the four categories as follows: Category 1: Located in a Low-Income Community 600,000. 00 MW are available to facilities located in low-income communities.

1a Eligible residential BTM facilities: 200,000. 00 MW 1b Eligible residential BTM facilities (Additional Selection Criteria reservation): 200,000. 00 MW 1c Eligible FTM facilities and non-residential BTM facilities: 100,000.

00 MW 1d Eligible FTM facilities and non-residential BTM facilities (Additional Selection Criteria reservation): 100,000. 00 MW Category 2: Located on Indian Land 200,000. 00 MW are available to facilities located on Indian Lands.

2a Located on Indian Land: 100,000. 00 MW 2b Located on Indian Land (Additional Selection Criteria reservation): 100,000. 00 MW Category 3: Qualified Low-Income Residential Building Project 200,000.

00 MW are available to Qualified Low-Income Residential Building Projects. 3a Qualified Low-Income Residential Building Project: 100,000. 00 MW 3b Qualified Low-Income Residential Building Project (Additional Selection Criteria reservation): 100,000.

00 MW Category 4: Qualified Low-Income Economic Benefit Project 800,000. 00 MW are available to Qualified Low-Income Economic Benefit Projects. 4a Qualified Low-Income Economic Benefit Project: 400,000.

00 MW 4b Qualified Low-Income Economic Benefit Project (Additional Selection Criteria reservation): 400,000. 00 MW 50% of the capacity of each category will be reserved for facilities meeting additional selection criteria, such as ownership or geographic location, 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. 48E(h) is the technology-neutral successor program to the 48(e) Low-Income Communities Bonus Credit program.

Eligible facilities under 48E(h) must categorically be non-combustion or non-gasification with a GHG emissions rate not greater than zero, as defined in the 48E Clean Electricity Investment Tax Credit. Applicants must complete a series of attestations provided in the application 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. Applications for the 2026 program year will open at 9 a.

m. ET on Feb. 2, 2026, and close at 11:59 p.

m. ET on Aug. 7, 2026.

When the application period opens, there will be an initial 30-day period ending at 11:59 p. m. ET on Feb.

2, 2026, where all applications will be treated as submitted on the same date and at the same time. Applications submitted after this 30-day period will be considered on a rolling basis and only after the review of applications submitted during the 30-day period have been completed and only if capacity is available.

Guidance 48E(h): Beginning January 2025 Note: These items may contain information that has been superseded by newer guidance. Revenue Procedure 2025-11 PDF NPRM: Clean Electricity Low-Income Communities Bonus Credit Amount Program Application period - Opens at 9 a. m.

Eastern time 30-day initial application window - Closes at 11:59 p. m. Eastern time Rolling application period - Closes at 11:59 p.

m. Eastern time Program year - Closes by 11:59 p. m.

Eastern time Related resources for 48E(h) Credits and deductions under the Inflation Reduction Act of 2022 Publication 6065, 48E(h) Applicant User Guide PDF Publication 6068, 48E(h) Applicant Checklist PDF Program Capacity Dashboard Publication 6066, 48E(h) Successor-In-Interest Transfer Request User Guide PDF Maps for Category 1 and Geographic Selection Criteria Publication 6067, 48E(h) Eligible Federal Housing Programs-Category 3 PDF Household Income Limits for Category 4 Category 3 Benefits Sharing Statement Template Category 4 Demonstration of Financial Benefits Statement Template Guidance 48(e): For 2023 and 2024 only 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) Related resources for 48(e): For 2023 and 2024 only Publication 6058, 48(e) Applicant User Guide PDF (2024 program year) Publication 6070, 48(e) Low-Income Communities Bonus Credit Program Application Checklist PDF (2024 program year) Publication 6069, 48(e) Low-Income Communities Bonus Credit Program FAQs PDF (2024 program year) Eligible Federal Housing Programs for Category 3 PDF Successor-In-Interest Allocation Transfer Request Guide PDF IR-2024-142, IRS and Treasury issue release capacity limitation carryover amounts for the 2024 program year (May 17, 2024) 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) Form 3468, Investment Credit 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. Page Last Reviewed or Updated: 04-Mar-2026