Sign Up For Novogradac Industry Alert Emails

Inflation Reduction Act Bonus Credits

The Inflation Reduction Act (IRA) provides bonus credits for certain projects. Investment tax credit properties in a low-income community or on American Indian land are eligible for 10% bonus credits, subject to an annual overall calendar year limitation of 1.8 gigawatts. The IRA uses the new markets tax credit (NMTC) definition of a low-income community to determine eligibility for bonus credits.

Use the Novogradac NMTC Mapping Tool to identify low-income or designated American Indian/Alaska Native/Native Hawaiian areas.

Launch the NMTC Mapping Tool

Additional Resources

Low-Income Communities Bonus Credit Program
August 2023
U.S. Office of Economic Impact and Diversity (external site)

Frequently Asked Questions
October 2023

User Guide
October 2023

The Inflation Reduction Act: An Overview of Clean Energy Provisions and Their Impact on Affordable Housing
January 13, 2023
Blog Article

Aug. 23, 2022: The Inflation Reduction Act and What it Means to Renewable Energy and Beyond
August 23, 2022
Podcast

Schumer and Manchin Reconciliation Deal Provides $369 Billion in Clean and Renewable Energy Provisions, Including ITC, PTC Extension, as well as ITC Bonus for Affordable Housing and Low-Income Communities
July 29, 2022
Blog Article

Historic Expansion of Housing, Community Development and Green Energy Tax Incentives Included in $1.2 Trillion House Ways and Means Committee Reconciliation Legislation
September 13, 2021
Blog Article

Novogradac’s Renewable Energy Working Group Seeks to Answer Questions
October 24, 2022
Blog Article

Learn more about Novogradac's expertise and many services