Treasury Readies Guidance on Energy Community Bonus Tax Credit

Treasury and the IRS will issue guidance Tuesday on the bonus tax credit for clean energy projects located in communities negatively affected by the energy transition, part of the administration’s goal to incentivize the shift from fossil fuels.

President Joe Biden’s tax-and-climate law established an optional 10% tax credit boost for clean energy developers and investors who place a facility in an “energy community.” The law sparked concern that a broad definition of an energy community wouldn’t target communities most dependent on fossil fuels.

The agencies will release “detailed information” on the energy community bonus credit ...