; (ii) a lifeline rate: (iii) bill discounting; (iv) special hardship provisions; (v) a percentage-of-income payment plan; or (vi) water efficiency assistance, including direct installation of water efficient fixtures and leak repair, which may be completed through a contracted third party. (C) Assistance exempt from taxation Notwithstanding any other provision of law, assistance provided to a low-income household under a program carried out by an eligible entity (or a State, on behalf of a small community-serving eligible entity) using a grant under this subsection shall be exempt from income tax under the Internal Revenue Code of 1986. (6) Application To receive a grant under this subsection, an eligible entity (or a State, on behalf of a small community-serving eligible entity) shall submit to the Administrator an application that demonstrates that— (A) the proposed program of the eligible entity or small community-serving eligible entity, as applicable, meets the requirements developed under paragraph (5)(A); (B) the eligible entity or small community-serving eligible entity, as applicable, has a long-term financial plan to fund the activities necessary to achieve or maintain compliance with this Act; and (C) a grant awarded under this subsection would support the efforts of the eligible entity (or the State, on behalf of a small community-serving eligible entity) to generate the necessary funds to achieve or maintain compliance with this Act while mitigating the cost to low-income households. (7) Priority In awarding grants under this subsection, the Administrator shall give priority to eligible entities or small community-serving eligible entities, as applicable— (A) that are affected by consent decrees relating to compliance with this Act; (B) the residential customers of which have experienced rate or fee increases for wastewater, stormwater, or drinking water services greater than or equal to 30 percent during the period beginning on the date that is 3 years before the date of enactment of this section