The Biden administration issued final guidance on the bonus tax credit for American communities dependent on fossil fuels.
The new rules, issued by the Department of the Treasury and the Internal Revenue Service on April 4, will allow “green” energy companies to secure additional tax credits when investing in local communities economically tied to oil and coal extraction.
The Treasury Department is offering the credits under an August 2022 law that contained $270 billion in tax breaks for “green” energy.The Inflation Reduction Act (IRA), which was passed by Congress last summer, extended a 30 percent tax credit for wind, solar, and other green energy projects.
It also provided an extra 10 percent investment tax credit to those investing in what are termed “energy communities” to end their generational dependence on fossil fuels so they can supposedly benefit from “green” energy. A 10 percent production tax credit was also provided for facilities that generate green energy.
These additions to the bill helped secure West Virginia Democrat Sen. Joe Manchin’s essential support to pass it in the Senate.
The tax credits are expected to cover projects in coal-dependent regions like Appalachia, which have been decimated after government policies led to mine and plant closures, putting many out of work.“The Inflation Reduction Act ensures all Americans benefit from the growth of the clean energy economy by driving investment and creating jobs in coal communities,” said Treasury Secretary Janet L. Yellen in a press statement.
