The Low-Income Communities Bonus Credit Program, administered by the Department of Energy (DOE), promotes cost-saving solar or wind investments in low-income communities, on Indian land, as part of affordable housing developments, and benefitting low-income households. The Low-Income Communities Bonus Credit supplements the existing Clean Electricity Investment Tax Credit (sometimes referred to as “48E”). The standard 48E credit provides owners with a base credit of up to 30% of the cost of a renewable energy project. In particular, the Low-Income Communities Bonus Credit (also referred to as the “Low-Income or EJ Adder”) can add 20 percentage points to the base credit for solar or wind installations at low-income residential buildings considered eligible covered housing under Category 3 (Qualified Low-Income Residential Project), which includes most HUD-assisted multifamily housing properties. Therefore, the base ITC, when combined with this bonus, can fund 50% of a residential solar project. If a project qualifies for additional ITC bonuses, an owner can potentially fund up to 70% of the costs of a solar facility.

The 2024 program year of the Low-Income Communities Bonus Credit Program’s initial application window will close this Thursday, June 27, at 11:59pm ET. All applications will be considered as submitted by this date will be considered as submitted at the same date and time. Applications submitted after the 30-day application window will then be evaluated on a rolling basis.

HUD’s Office of Multifamily Housing Programs has launched a new series of recordings to help owners of HUD-assisted multifamily housing properties as well as other stakeholders apply for this credit under Category 3 (Qualified Low-Income Residential Project). The first two recordings, which feature two owners who were approved for this bonus credit in 2023 for several of their properties, are now available to assist applicants who are currently preparing an application. They include a recording focused on ‘General Application Tips’ and a follow-up recording focused on providing information on how to prepare the Draft Benefits Sharing Statement, which is a required component of the Category 3 application.

HUD will be producing additional recordings to add to this ‘playlist’ in order to provide owners and other stakeholders with more introductory information on this program in the coming months. HUD will be posting the presentations used in the recordings online as well; however, considering the initial application window’s imminent closing, HUD is sharing these resources below.

Disclaimers: Please note that these recordings and materials represent the views of those participating in the presentation only (HUD and certain stakeholders) and no other Federal entities.  Please refer to the official IRS guidance (Revenue Procedure 2024-19 and Treasury Regulations 1.48(e)-1) for complete information on eligibility requirements and the application process. The information provided in these materials should not be considered tax advice or tax filing support. Please consult a tax professional, accountant, or attorney if you need tax-related assistance.