Highlight: Backing Energy Communities

TL/DR –

The US Internal Revenue Service has provided additional information on the tax credit for energy communities in the Inflation Reduction Act. This tax credit is designed to fund clean energy projects in US communities historically tied to fossil fuels. The new guidance broadens the definition of fossil fuel-related employment under the tax credit.

US Internal Revenue Service Expands Tax Credit for Energy Communities

The US Internal Revenue Service (IRS) has unveiled further guidance on the Inflation Reduction Act’s tax credit for energy communities. Aimed at funding US clean energy projects, this credit benefits communities traditionally reliant on fossil fuels. Today’s update broadens the fossil fuel–related employment definition under the credit.

Eligibility and Impact of Tax Credit on Energy Communities

How does an area qualify as an energy community? How will the tax credit support those most economically impacted by the shift to clean energy? Daniel Raimi, a Fellow at Resources for the Future, discusses these queries in a dedicated In Focus video.

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