Learn About the Energy Community Tax Credit Bonus
The Inflation Reduction Act (IRA) introduces an exciting opportunity for businesses through the Energy Community Tax Credit Bonus. This incentive offers significant financial benefits for commercial solar projects located in designated energy communities.
What is the Energy Community Tax Credit Bonus?
The Energy Community Tax Credit Bonus provides a substantial boost to tax credits for businesses investing in solar energy. Specifically, eligible projects can receive:
- Up to a 10% bonus on production tax credits
- An additional 10 percentage points on investment tax credits
Who Qualifies?
To qualify for the Energy Community Tax Credit Bonus, your project must be located in an “energy community” as defined by the IRA. These areas include:
- Brownfield sites as per the Comprehensive Environmental Response, Compensation, and Liability Act of 1980 (CERCLA)
- Metropolitan or non-metropolitan statistical areas that have:
- 0.17% or greater direct employment or 25% or greater local tax revenues from coal, oil, or natural gas industries
- An unemployment rate at or above the national average for the previous year
- Census tracts, or adjacent tracts, where:
- A coal mine has closed after 1999
- A coal-fired electric generating unit has been retired after 2009
How to Determine Eligibility
To help identify whether your project falls within an eligible energy community, a mapping tool is available. This tool provides up-to-date data on qualifying census tracts and statistical areas. It includes:
- Census tracts with coal mine closures or coal-fired electric generating unit retirements
- Metropolitan and non-metropolitan statistical areas meeting the employment and unemployment criteria
Get a Commercial Solar Quote Today
Ready to take advantage of this tax credit bonus? Contact us to get a commercial solar quote and see if your business qualifies for the 40% bonus tax credit. Our team of experts will guide you through the process, ensuring you maximize your benefits while transitioning to clean energy.
Why Go Solar with Us?
- Expert Consultation: We provide detailed assessments to ensure your project meets all criteria for the tax credit bonus.
- Seamless Process: From planning to installation, we handle every step of your solar project.
- Financial Savings: Reduce your energy costs and benefit from significant tax incentives.
Speak with us, get the numbers for your facility on going solar.