; (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 the Federal Water Pollution Control Act ( 33 U.S.C. 1251 et seq.)