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Energy Community
Tax Credit Bonus
The Energy Community Tax Credit Bonus advances the Administration’s commitments to support and revitalize the economies of coal and power plant communities.
Energy Community
As defined in the Inflation Reduction Act (IRA), the Energy Community Tax Credit Bonus applies a bonus of up to 10% (for production tax credits) or 10 percentage points (for investment tax credits) for projects, facilities, and technologies located in energy communities. Increased credit amounts or rates are available to taxpayers that satisfy certain energy community requirements under Section 45, 48, 45Y, or 48E of the Internal Revenue Code. The IRA defines energy communities as:
- A “brownfield site” (as defined in certain subparagraphs of the Comprehensive Environmental Response, Compensation, and Liability Act of 1980 (CERCLA))
- A “metropolitan statistical area” or “non-metropolitan statistical area” that has (or had at any time after 2009)
- 0.17% or greater direct employment or 25% or greater local tax revenues related to the extraction, processing, transport, or storage of coal, oil, or natural gas; and
- has an unemployment rate at or above the national average unemployment rate for the previous year
- A census tract (or directly adjoining census tract)
- in which a coal mine has closed after 1999; or
- in which a coal-fired electric generating unit has been retired after 2009
| I placed my property in service… | Eligible Fossil Fuel Employment counties that may or may not also meet the unemployment rate threshold are listed in… | Eligible Fossil Fuel Employment counties that also meet the unemployment rate threshold are listed in…. | Eligible Coal Closure census tracts are listed in… |
|---|---|---|---|
| After Dec. 31, 2022, and before June 7, 2024 | |||
| After June 6, 2024, and before release of the 2025 Annual Statistical Area Category and Coal Closure Category Updates* |
*Annual Statistical Area Category and Coal Closure Category Updates generally will be released by the IRS in approximately May of each year.
The mapping tool reflects currently available data on two types of energy communities. First, the map shows energy communities that are census tracts and that have had coal mine closures after December 31, 1999, or coal-fired electric generating unit retirements after December 31, 2009, and tracts that are directly adjoining. Second, the map shows the metropolitan statistical areas (MSAs) and non-metropolitan statistical areas (non-MSAs) that are energy communities for 2023. These MSAs and non-MSAs have had for at least one year since 2009, 0.17% or greater direct employment related to extraction, processing, transport, or storage of coal, oil, or natural gas (the fossil fuel employment (FFE) threshold) and have an unemployment rate for 2023 that is equal to or greater than the national average unemployment rate for 2023. These MSAs and non-MSAs that meet the 2023 unemployment rate requirement are energy communities as of June 7, 2024, and will maintain that status until the unemployment rates for 2024 become available and the 2025 Annual Statistical Area Category and Coal Closure Category Update is released. The guidance that determines the MSAs and non-MSAs that are energy communities based on 2024 unemployment rates will likely be released in May 2025. In addition, the map shows MSAs and non-MSAs that only meet the FFE threshold. These MSAs and non-MSAs are not energy communities as of June 7, 2024, because they do not meet the unemployment rate requirement; however, these areas could become energy communities in a future year if the unemployment requirement is also met. Note that brownfields are not shown on this map.
For additional information:
Contact information:
- For general questions or comments, contact [email protected].
- For questions on closed coal mines, see the Mine Data Retrieval System or contact the MSHA Data Group.
- For questions on closed power plants data, contact [email protected].
Disclaimer
The mapping tool may not be relied upon by taxpayers to substantiate a tax return position or for determining whether certain penalties apply and will not be used by the IRS for examination purposes. The mapping tool does not reflect the application of the law to a specific taxpayer’s situation, and the applicable Internal Revenue Code provisions ultimately control.