IRS Releases Draft Rule on Low-Income Community Bonus Credit for Solar and Wind Projects
The Internal Revenue Service (IRS) has released a Notice of Proposed Rulemaking that would provide additional guidance on the Low-Income Community Bonus Credit Program relating to certain solar and wind projects. This follows an IRS notice released in February. Public comments on the latest release are due by June 30.
Qualifying solar and wind equipment is eligible for a federal tax credit of up to 30% of the cost as part of the Section 48 Investment Tax Credit. Within residential development, this credit is typically claimed for installing eligible solar or wind projects as part of a multifamily project.
Under the Inflation Reduction Act enacted into law last year, Congress established a low-income communities bonus credit program, which allows certain Section 48-eligible projects to receive an additional 10% or 20% credit. Unlike traditional tax credits, the low-income communities bonus credit program is capacity limited, meaning eligible taxpayers must apply for an allocation of “capacity limitation” in order to claim the bonus credit.
Projects located on Indian land or in a low-income community are eligible for a 10% bonus credit. Projects are eligible for a 20% bonus credit if the project is a qualifying low-income residential building, which includes projects financed with Low-Income Housing Tax Credits.
The proposed rules released by the IRS would establish the requirements to apply for the 2023 “capacity limitation” as well as for future years.
Latest from NAHBNow
Membership | Economics
Sep 11, 2026
Median Revenue Flat for NAHB Builder Members in 2025
According to the most recent NAHB member census, nearly two-fifths (38%) of NAHB Builder members earned between $1 million and $5 million in total revenue in 2025.
Education | Education at IBS
Sep 10, 2026
13 IBS Education Presentation Replays Now Available
To help industry professionals stay ahead of residential construction trends and bring actionable ideas to their businesses, NAHB is offering members exclusive access to the most valuable IBS Education sessions from the 2026 show.
Latest Economic News
Economics
Sep 10, 2026
Energy Prices Rise Again in August
Residential building material prices, excluding energy, rose 0.2% in August and were up 5.1% from a year ago. Energy prices rose sharply in August, as prices for energy inputs to residential construction rose 6.6% over the month.
Economics
Sep 09, 2026
Mortgage Applications Decline for Sixth Straight Month in August
Mortgage application activity continued to decline in August as elevated US treasury yields pushed mortgage rates higher. The Mortgage Bankers Association’s (MBA) Market Composite Index, a measure of total mortgage application volume, declined 3.2% month-over-month in August on a seasonally adjusted basis, marking the sixth consecutive monthly decline.
Economics
Sep 09, 2026
Who Are NAHB’s Builder Members?
The National Association of Home Builders (NAHB) conducts an annual census to better understand the composition and characteristics of its members. In 2025, 35% of NAHB’s membership was comprised of builder members—single-family and multifamily builders, residential and commercial remodelers, commercial builders, land developers, and manufacturers of modular/panelized/log homes.