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.
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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, IRS Notice 2023-45, and IRS Notice 2023-47, Appendix 1, Appendix 2, and Appendix 3.
The mapping tool below 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 2022 that is equal to or greater than the national average unemployment rate for 2022. These MSAs and non-MSAs that meet the 2022 unemployment rate requirement are energy communities as of January 1, 2023 and will maintain that status until the unemployment rates for 2023 become available and a new list of energy communities is provided. The guidance that determines the MSAs and non-MSAs that are energy communities based on 2023 unemployment rates will likely be released in May 2024. In addition, the map shows MSAs and non-MSAs that only meet the FFE threshold. These MSAs and non-MSAs are not energy communities for 2023 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 general questions or comments, contact Contact@EnergyCommunities.gov.
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 InfoElectric@eia.gov.
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.