IRS Issues Notice 2024-30 Expanding Energy Community Rules
The Internal Revenue Service has recently released Notice 2024-30, which outlines the expanded rules for defining energy communities eligible for production and investment tax credits.
Expansion of Energy Community Designation
In addition, the IRS has updated Appendix 1 and Appendix 2, identifying new Metropolitan Statistical Areas (MSAs) and non-MSAs meeting specific criteria.
Inflation Reduction Act Impact
The Inflation Reduction Act offers enhanced credit amounts or rates for compliance with energy community requirements.
Energy Community Categories
- Brownfield sites
- MSA/non-MSA based on unemployment rates
- Census tracts affected by coal mine closures or retired coal-fired electric generating units
Enhanced Credit Amounts
Meeting energy community provisions may result in a 10% increase in production tax credit and a 2% increase in investment tax credit. Further benefits are available if additional requirements are fulfilled.
Notice 2023-29 Updates
The recent notice expands the Nameplate Capacity Attribution Rule and adds new NAICS industry codes for determining the Fossil Fuel Employment rate.
Additional Resources
For more details, refer to the frequently asked questions for energy communities and the inflation reduction act of 2022 page on IRS.gov.
Read More of this Story at milehighcre.com – 2024-03-22 20:45:33
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