Energy Community
An IRA-defined geographic area with brownfields, retired coal mines/plants, or high fossil fuel employment, qualifying clean energy projects built there for a 10% bonus tax credit.
Why It Matters
The DOE energy communities ITC bonus applies to both residential and commercial projects. Check if your property qualifies at energycommunities.gov.
Related Tools
Related Terms
Federal Tax Credit (ITC)
Investment Tax Credit allowing homeowners to deduct a percentage of solar installation costs from federal taxes. Currently 30% through 2032.
IRA (Inflation Reduction Act)
Landmark 2022 federal legislation that extended and expanded clean energy tax credits, including the 30% solar ITC through 2032, and added new incentives for batteries, heat pumps, and EVs.
Adder (Tax Credit Bonus)
Additional percentage points on top of the base 30% ITC for projects meeting specific criteria: low-income community (+10-20%), domestic content (+10%), energy community (+10%), under 5 MW (+10%).