SECTION 3. FACILITY

CATEGORIES

.01 Category 1: Located in a Low-In- come Community . Under § 48(e)(2)(A) (iii)(I), the term low-income communi- ty is generally defined under § 45D(e) (1), with certain modifications described elsewhere in § 45D(e), as any population census tract if the poverty rate for such

tract is at least 20 percent, or, in the case of a tract not located within a metropol­ itan area, the median family income for such tract does not exceed 80 percent of statewide median family income, or in the case of a tract located within a met­ ropolitan area, the median family income for such tract does not exceed 80 percent of the greater of statewide median family income or the metropolitan area medi­ an family income. A qualified solar and wind facility that is described in this sec­ tion 3.01 and also in section 3.03 or 3.04 of this notice is considered a Category 3 facility or Category 4 facility (as appli­ cable).

.02 Category 2: Located on Indi- an Land . Section 48(e)(2)(A)(iii)(I) provides that Indian land is defined in § 2601(2) of the Energy Policy Act of 1992 (25 U.S.C. 3501(2)). A qualified solar and wind facility that is described in this section 3.02 and also in section 3.03 or 3.04 of this notice is considered a Category 3 facility or Category 4 facility (as applicable).

.03 Category 3: Qualified Low-Income Residential Building Project .

(1) Section 48(e)(2)(B) provides that a facility will be treated as part of a quali- fied low-income residential building proj- ect if such facility is installed on a resi­ dential rental building which participates in an affordable housing program, and the financial benefits of the electricity pro­ duced by such facility are allocated equi­ tably among the occupants of the dwelling units of such building.

(2) An affordable housing program in­ cludes any of the following:

(A) A covered housing program (as defined in § 41411(a) of the Violence Against Women Act of 1994 (34 U.S.C. 12491(a)(3)). (B) A housing assistance program ad­ ministered by the Department of Agricul­ ture under title V of the Housing Act of 1949. (C) A housing program administered by a tribally designated housing entity (as defined in § 4(22) of the Native American Housing Assistance and Self-Determina­ tion Act of 1996 (25 U.S.C. 4103(22)).

(D) Such other affordable housing pro­ grams as the Secretary may provide.

(3) For a qualified low-income resi­ dential building project, § 48(e)(2)(D) provides that electricity acquired at a below-market rate will be considered a financial benefit. The forthcoming guid­ ance will further clarify the parameters of financial benefit.

.04 Category 4: Qualified Low-Income Economic Benefit Project .

(1) Section 48(e)(2)(C) provides that a facility will be treated as part of a qualified low-income economic benefit project if at least 50 percent of the financial benefits of the electricity produced by such facility are provided to households with income of less than 200 percent of the poverty line (as defined in § 36B(d)(3)(A)) appli­ cable to a family of the size involved, or less than 80 percent of area median gross income (as determined under § 142(d)(2) (B)).

(2) For a qualified low-income eco­ nomic benefit project, § 48(e)(2)(D) provides that electricity acquired at a below-market rate will be considered a financial benefit. The forthcoming guid­ ance will further clarify the parameters of financial benefit.