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April 4, 2023

IRS guidance provides preview of forthcoming regulations on what constitutes an energy community for production and investment credits

Notice 2023-29 describes rules the IRS intends to include in proposed regulations for determining what constitutes an "energy community" for the production and investment and tax credits. The forthcoming regulations will lay out rules that taxpayers must satisfy to qualify for the energy community bonus credit under IRC Sections 45, 45Y, 48 and 48E. Written comments may be submitted by May 4, 2023, on the possible data sources, revenue categories and procedures for determining whether certain metropolitan statistical areas (MSAs) or non-MSAs qualify under the Statistical Area Category based on Fossil Fuel Tax Revenue. A Tax Alert is forthcoming.

Published by NTD’s Tax Technical Knowledge Services group; Carolyn Wright, legal editor