Treasury Publishes Guidance on Energy Community Bonus Credit

On June 7, 2024, Treasury released a notice providing information to help taxpayers determine whether they are eligible for the energy community bonus credit that applies to IRA production and investment tax credits. The guidance provides information on whether clean energy projects meet the Statistical Area Category or Coal Closure Category, fossil fuel employment threshold, and unemployment rate threshold. The IRA’s energy community bonus provides a 10% increase to investment tax credits or production tax credits when certain eligibility requirements are met. Energy communities consist of three categories: brownfields, those meeting a statistical area category, or coal closure category.