Varies
Amount varies
Tax Credit
Reduces tax liability
Rolling
No fixed cutoff
Annual tax return
Claim with year-end filing
Moderate
File with tax return
Tax credits that attract private investment to low-income communities by allowing investors to receive a 39% federal tax credit over 7 years on investments in Community Development Entities, which then deploy capital to businesses in distressed areas.
Do I qualify?
Answer the questions below to get an instant self-assessment of your fit for this program. This is informational — final determinations are made by the administering agency.
1.Investment must flow through a certified Community Development Entity (CDE)
2.Business must be located in a qualified low-income community census tract
3.39% credit taken over 7 years (5% in years 1-3; 6% in years 4-7)
4.Eligible: real estate, operating businesses, community facilities in low-income areas
5.CDEs apply competitively to CDFI Fund for allocation authority annually
IRS · United States
Allows businesses to deduct up to $5.65/sq ft for commercial buildings achieving significant energy savings through improvements to HVAC, lighting, and building envelope systems. IRA expanded the deduction and allowed non-profits and government to allocate it.
LPO · United States
Offers federal loan guarantees for innovative clean energy projects that struggle to access conventional financing. Supports first-of-kind commercial-scale projects in renewable energy, storage, advanced nuclear, and industrial decarbonization.
NYSDEC · New York
Provides transferable tax credits for remediating contaminated brownfield sites and redeveloping them for residential, commercial, or industrial use, with enhanced credits for affordable housing and green buildings.