IRS Expands Energy Community Rules to Increase Areas Eligible for Tax Credits

• IRS issued guidance expanding rules for determining what qualifies as an energy community for tax credits • Added metro areas and non-metro areas that meet fossil fuel employment threshold as energy communities • Energy communities eligible for increased production and investment tax credits under Inflation Reduction Act • Guidance expands nameplate capacity attribution rule and adds industry codes for fossil fuel employment rate • Updated FAQs on IRS.gov for energy communities under the Inflation Reduction Act