Need help finding federal funding sources for your projects? Try our new and improved Funding Tool

48(e), 48E(h): Low-Income Communities Bonus Credit

Federal Agency


Internal Revenue Service (IRS)


To further incentivize to the Clean Electricity Investment Tax Credit for small-scale solar and wind facilities on Tribal land and in low-income communities.

Applicant and/or Project Eligibility Requirements

Eligible facilities are solar and wind facilities with a maximum net output of less than 5 MW, including associated energy storage technology.

Decarbonization Considerations

The program prioritizes the following goals: increasing adoption of and access to renewable energy facilities in underserved and environmental justice communities, encouraging new market participants, and providing substantial benefits to underserved communities and individuals who have been historically marginalized from economic opportunities and overburdened by environmental impacts.

Equity Considerations

The program includes specific annual carve-outs for Tribal communities as well. Low income communities can be identified using the DOE's CEJST Map:,United%20States%20as%20disadvantaged%20communities.

Helpful Tips

Direct Pay is eligible for this credit for tax-exempt entities. To learn more about how these tax credits work for entities with and without tax liability, check out our Funding Guidance here:

Other Notes

This bonus requires an application by the taxpayer. Applications begin October 19, 2023. All applications recieved by November 18, 2023 will be treated as received on the same date and a lottery will determine which applications are reviewed first (projects owned by tax-exempt entities, Tribal communities and environmental justice communties, which go the front of the review line). Rolling applications after November 18, 2023 if there is remaining capacity in the category. If there is remaining capacity in the category on October 19, 2024 then capacity rolls over to the next year, but cannot be rolled over mulitple years"; Additional Guidance on Low-Income Communities Bonus Credit Program (

Deadline (Announced or Anticipated)

February 29, 2024 (Program Year 2023)

Funding Available

1.8 GW of allocations annually

Max Award Amount

Bonus of 10% for projects placed in a low-income community or on Tribal land. Bonus of 20% if projects that are part of certain federally-subsidized housing programs or that offer at least 50% of the financial benefits of the electricity produced to low-income households.

Expected Allocations


Average Award (Estimated)


Matching Funds


Go to Program Website