In Focus: Supporting Energy Communities

The US Internal Revenue Service has released additional guidance on the tax credit for energy communities in the Inflation Reduction Act. The tax credit aims to help fund clean energy projects in communities in the United States that historically have had significant economic ties to fossil fuels. Today’s new guidance expands the definition of fossil fuel–related employment under the tax credit.

What qualifies an area as an energy community? Will the tax credit help those who may be most vulnerable to the economic effects of a transition to clean energy? Resources for the Future Fellow Daniel Raimi shares his thoughts on the tax credit in this In Focus video.