What’s an “energy community”? Recent IRS guidance addresses the topic as it relates to certain tax credits made possible by the Inflation Reduction Act (IRA). The IRA specifies three categories of energy communities: brownfield sites, coal communities and certain statistical areas identified based on tax revenues and unemployment rates. Those sites that meet the requirements generally are eligible for a 10% production tax credit and a 2% investment tax credit (or a 10% investment tax credit if wage and apprenticeship or other requirements are also met). The proposed regulations are likely to apply to tax years ending after April 4, 2023. See IRS Notice 2023-29: https://bit.ly/3nKYK8C
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