Bloomberg: "Treasury Details Tax-and-Climate Law Energy Community Rules
Daniel Raimi provides his thoughts on brand-new guidelines from the IRS and US Treasury Department on the energy community tax credit outlined in the Inflation Reduction Act.
The guidance was largely consistent with what the law required, said Daniel Raimi, a fellow with Resources for the Future who created a map last year to estimate the boundaries of energy communities.
While coal communities are clearly defined, the inclusion of an annually updated fossil-fuel employment figure appears to make swaths of the country eligible for the tax credit one year and ineligible the next year, Raimi said.
“Coal communities have some certainty with this new definition,” he said. “The other parts of the map, it’s a little less clear at this point.”
He noted that roughly half of the country is potentially eligible for the tax credit, saying, “so if the goal is to specifically target fossil fuel generation regions, we can see that it doesn’t do that.”
