Treasury Releases Guidance for IRA Investments in Coal Communities
Last week, the U.S. Treasury Department and Internal Revenue Service (IRS) released guidance that provides detailed information about the bonus under the Inflation Reduction Act (IRA) for clean energy projects and facilities located in communities historically part of energy production, e.g., coal communities. The energy community bonus for the Investment Tax Credit (ITC) and Production Tax Credit (PTC) is available to developers for locating projects in historical energy communities. These include, among others, areas with closed coal mines, coal-fired power plants, and brownfields. There is a searchable mapping tool available to help identify areas that may be eligible for the energy communities bonus. Click here to review the guidance, and click here for GFOA’s IRA Implementation Resource page.