SOMAH incentives are capacity-based and depend on system size, tenant versus common-area allocation, and whether the project receives the Federal Investment Tax Credit (ITC) and/or Low-Income Housing Tax Credit (LIHTC).

For solar PV:

• The per-AC-watt incentive rate is reduced by 30% if the project receives either the ITC or LIHTC.
• The per-AC-watt incentive rate is reduced by 50% if the project receives both the ITC and LIHTC.

These tax credit adjustments are already built into the solar incentive rates in Table 4 and are not treated as “other incentives” for solar.

For storage:

Storage Incentive = Energy capacity (Wh) × $1.10 per Wh

Any storage ITC, LIHTC, or other incentives (such as local or state rebates) are treated as “other incentives” and must be reported in the application. These amounts reduce the SOMAH storage incentive so that total incentives do not exceed the total system cost or total eligible project costs.