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March 22, 2024

IRS expands definition of energy communities for bonus IRC Section 45 and 48 credits

The IRS today released Notice 2024-30, which modifies earlier guidance on the definition of "energy community" for purposes of the bonus IRC Section 45 and 45Y production tax credit and the IRC Section 48 and 48E investment tax credit provided by the Inflation Reduction Act (IRA) (see Tax Alert 2023-1083). The Notice expands the Nameplate Capacity Attribution rule and adds two additional North American Industry Classification System (NAICS) codes for purposes of determining the fossil fuel employment rate. A Tax Alert is forthcoming.

Published by NTD’s Tax Technical Knowledge Services group; Chris DeZinno, legal editor