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

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
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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
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October 24, 2022
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