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.
Official websites use .gov
A .gov website belongs to an official government
organization in the United States.
Secure .gov websites use HTTPS
A lock ()
or https:// means you’ve safely connected to
the .gov website. Share sensitive information only on official,
secure websites.
The Energy Community Tax Credit Bonus advances the Administration’s commitments to support and revitalize the economies of coal and power plant communities.
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:
For additional information, see Treasury Notice 2023 – 29, Appendix A, Appendix B, and Appendix C.
The mapping tool below reflects currently available data on two types of potentially qualifying energy communities. First, the map shows the census tracts and directly adjoining tracts that have had coal mine closures since 1999 or coal-fired electric generating unit retirements since 2009. These census tracts qualify as energy communities. Second, the map shows the metropolitan statistical areas (MSAs) and non-metropolitan statistical areas (non-MSAs) that have had 0.17% or greater direct employment related to extraction, processing, transport, or storage of coal, oil, or natural gas. Only a subset of these MSAs and non-MSAs will qualify as energy communities, depending on whether their unemployment rate for the previous year is equal to or greater than the national average unemployment rate. Annual unemployment rates at the county level for 2022 will be released in April 2023. This map will be updated with the MSAs and non-MSAs that meet both the 0.17% employment threshold and the unemployment rate requirement once the 2022 unemployment rates are released. The updated map will be released in May 2023. Note that brownfields are not shown on this map.
For more information, see the Mine Data Retrieval System or contact the MSHA Data Group.
For questions on closed power plants data, contact [email protected].
For general questions or comments, contact [email protected].
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.