IRA Clean Electricity Credits (§48E / §45Y) + Low-Income Communities Bonus
OBBBA (July 4, 2025) terminates §48E and §45Y credits for wind and solar facilities that did not begin physical construction by July 4, 2026 (12 months after enactment). Non-wind/solar zero-emission technologies (geothermal, nuclear, fuel cells, etc.) are NOT phased out and continue to earn the full §48E / §45Y credit. Chicago solar projects that began construction before July 4, 2026 are grandfathered. The 2026 Low-Income Communities Bonus Credit program window (§48E(h)) closes August 7, 2026.
Check an Address — Free Snapshot
See whether a specific Chicago address sits inside the area that unlocks IRA Clean Electricity Credits (§48E / §45Y) + Low-Income Communities Bonus, alongside every other incentive that touches that parcel.
Owners of qualified clean electricity facilities placed in service after 2024. Solar and storage projects <5 MW are the typical Chicago use case. Nonprofits, schools, places of worship, and local governments can monetize via elective pay.
IRA Clean Electricity Credits (§48E / §45Y) + Low-Income Communities Bonus is administered at the federal level. Depending on the program, eligibility may depend on the specific location, property type, or business activity rather than a single drawn boundary.
Boundaries are precise and change over time, so exact eligibility always depends on the specific address. The fastest way to know is to run a free snapshot for the parcel you have in mind.
Typical range · 30% base ITC + up to 20% bonuses (50% total possible)
- +30% base Investment Tax Credit (§48E)
- ++10% bonus for energy community sites (brownfield, MSA fossil-fuel employment)
- ++10% bonus for low-income community projects, or +20% for qualified low-income economic benefit projects
- +Production Tax Credit alternative (§45Y) on a $/MWh basis
- +PHASE-OUT: §48E / §45Y credits for wind and solar apply only to facilities that begin physical construction by July 4, 2026 (OBBBA). Non-wind/solar zero-emission technologies unaffected.
- +Construction-start deadline: wind and solar facilities must begin physical construction by July 4, 2026 to qualify.
- 1Pre-file registration through IRS Energy Credits Online (ECO) portal
- 2Apply to the §48E(h) Low-Income Communities Bonus Credit Program (2026 program year: 2/2/2026 – 8/7/2026, 1.8 GW total capacity)
- 3Place facility in service; file Form 3468 (ITC) or Form 8835 (PTC) with tax return
Visit IRS Energy Credits Online to pre-file
- IRS Energy Credits Online pre-filing registration
- Documentation of energy-community or low-income-community designation
- Project cost basis and placed-in-service records
- Prevailing-wage and apprenticeship documentation (for full 30% rate)
This page is a starting point, not eligibility, legal, or tax advice. Verify current requirements, deadlines, and boundaries with the administering agency before applying or spending money — program rules and funding change over time.
- Phone
- (800) 829-1040
- Web
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Last verified 2026-07-02
Created by the 2017 Tax Cuts and Jobs Act and made permanent by the One Big Beautiful Bill Act (OBBBA, Pub. L. 119-21, July 2025) on a 10-year designation cycle. OZ 2.0 governor nominations underway July 2026; new OZ 2.0 map effective 1/1/2027. Existing OZ 1.0 tracts remain valid through 12/31/2028.
WOTC LAPSE NOTICE: The Work Opportunity Tax Credit (WOTC) expired December 31, 2025. As of July 2026 it is in legislative hiatus — no new credits are available for employees starting work on or after January 1, 2026. WOTC has historically been reauthorized retroactively; employers are advised to CONTINUE pre-screening new hires using IRS Form 8850 to preserve potential retroactive eligibility. Credit value: $2,400–$9,600 per qualifying hire.
The New Markets Tax Credit program was made permanent by OBBBA (July 2025) with $5 billion in annual allocation authority — eliminating the prior reauthorization risk. The 39% federal tax credit on qualified equity investments through certified CDEs continues without sunset. CY 2026 application round not yet open as of July 2026. NMTC flows through Community Development Entities (CDEs), not directly to businesses — projects typically $5M+.
HUD-designated Qualified Census Tracts boost Low-Income Housing Tax Credits (LIHTC) by 30%, making affordable housing development more financially viable in these areas.