Startup USA Guide
Part B · Startup-relevant scheme

Low-Income Communities Bonus Credit Program (Section 48(e)/48E(h)) (Low-Income Bonus ITC)

Internal Revenue Service / US Treasury

Other Growth / Scaling Energy & Clean Tech

On top of the base investment tax credit, small (under 5 MW) clean-electricity facilities can apply for an allocated bonus of 10% (low-income community or Tribal land) or 20% (qualified low-income residential or economic-benefit project), through an annual competitive application round.

Type of support
Other
Best suited for
Growth
Headline amount
10-20 percentage-point credit bonus (allocated, competitive)
How much
+10% or +20% credit bonus

Objectives

Steer a meaningful share of clean-energy investment specifically toward low-income and Tribal communities rather than leaving siting entirely to market forces.

Who can apply?

  • Facility under 5 MW net output.
  • Falls into one of four defined categories: low-income community, Indian land, qualified low-income residential building, or qualified low-income economic benefit project.
  • Must apply for and receive a capacity-limitation allocation before claiming the bonus.

What do you get?

  • 10% or 20% bonus added on top of the base investment tax credit.
  • The first program year drew 54,000+ applications from 48 states, DC, and 4 territories, generating an estimated $3.5B in low-income-community investment.

How to apply

Apply during the annual application window through the IRS/Treasury allocation portal for the relevant program year.

Go to official portal