IRS Issues Guidelines for Energy Communities and Bonus Credit Program in Accordance with the Inflation Reduction Act

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

Read More of this Story at – 2024-03-22 20:45:33

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