Clean Energy Projects: Newly Released Guidelines From The U.S. Treasury Department And The IRS

Get to know more about the new guidelines regarding clean energy projects.

The new guidelines for clean energy projects were also met with support. (Photo: TUV Rheinland)

New Guidelines For Clean Energy Projects

The U.S. Treasury Department and IRS have issued guidance on bonus tax credits for clean energy projects in energy communities. Energy communities are areas that historically generated power through various means.

The bonus for clean energy projects provides an additional 10% for the Investment Tax Credit and Production Tax Credit for projects located in these communities.

Qualifying areas of the bonus for clean energy projects include those affected by coal closures, high unemployment, and brownfield sites.

The guidance about clean energy projects also allows offshore wind facilities to attribute capacity to additional property and clarifies criteria for determining energy community status.

According to a published article by SmartNews, the American Clean Power Association has expressed support for the new guidance regarding clean energy projects.

More Information About The New Guidance

In a published article by E&E News by POLITICO, the Treasury Department has released new guidance to help offshore wind projects qualify for a bonus tax credit under the Inflation Reduction Act.

This bonus tax credit is part of the Biden administration’s strategy to promote clean energy projects in areas where fossil fuel facilities are closing.

The guidance expands the definition of “community” to include onshore locations such as operations and maintenance control systems, making it easier for offshore wind developers to receive a 10 percentage point boost to the investment tax credit.

READ ALSO: Rhode Island Residents And Their Unclaimed Refunds – More Necessary Information About The Owed Money!