Preheat oven to 400 degrees F.

Line a rimmed baking sheet with aluminum foil. Set a wire cooling rack inside the prepared pan and set aside.

Cut the bacon into squares. In a shallow dish, combine the brown sugar, chili powder and black pepper. Dredge the bacon squares in the brown sugar mixture and arrange the bacon on the rack. Sprinkle any remaining sugar mixture over the bacon. Bake in the preheated oven until crisp, about 20-25 minutes. Cool at least 5 minutes, and serve.