Mapping Tools: Along with the energy communities mapping tool released by the U.S. The Inflation Reduction Act’s definition of energy communities helps explain just how reliant many American towns’ economies are on the fossil fuel industry. An Overview of Inflation Reduction Act Energy Communities The Energy Community Tax Credit Bonus should be seen as just one tool in the federal government’s toolkit to meet their needs. The challenges energy communities face in this transition are multifaceted and require coordinated federal government support. However, while the legislative text of the Inflation Reduction Act specifies three categories that define energy communities, it fails to comprehensively identify or prioritize all the communities that will need these resources. The Inflation Reduction Act provides an Energy Community Tax Credit Bonus, which offers clean energy projects sited in “energy communities” a 10% bonus credit on top of the base Production and Investment Tax Credits. While the federal government had earlier identified priority energy communities by dependence on coal employment, the Inflation Reduction Act presents a broader definition.ĭefining energy communities is a critical and laudable goal and a necessary step towards ensuring funding, support and clean energy resources are directed to fossil fuel-dependent communities. Though the beneficiaries of the Inflation Reduction Act are many, it includes specific provisions to encourage investment in “energy communities” with ties to the coal, oil and gas industries. energy system’s transition to a low-carbon future by appropriating historic levels of investment to incentivize the deployment of clean energy technologies across the U.S. The Inflation Reduction Act, which was signed into law in August 2022, aims to accelerate the U.S. However, these same communities could see large opportunities in clean energy investments if policymakers make decisions to ensure they are not left behind. These communities are expected to face economic risks including job loss, reduced tax revenues to fund services and depressed property values. Millions of Americans live in communities heavily dependent on the fossil fuel industry, facing both risks and opportunities as the U.S.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |