IRA Energy Community Tax Credit Bonus
Projects qualifying for an underlying clean-energy credit may receive an energy-community bonus: 2 or 10 percentage points for the investment credit, depending on labor requirements or an exception, or a 10% increase for the production credit.
Check an Address — Free Snapshot
Compare the geocoded point for a Chicago address with the boundary used to screen IRA Energy Community Tax Credit Bonus. A match is a location signal; review the current program source for the boundary's role and remaining criteria.
Published criteria — confirm with Interagency Working Group on Energy Communities
- Project site must be inside a designated energy community
- Project must qualify for the underlying federal ITC or PTC
- Designations and claiming rules should be verified against current IRS guidance before relying on the bonus
IRA Energy Community Tax Credit Bonus is screened against the IRA Energy Community boundary. A geocoded point that intersects that boundary is a location signal, not a determination — review the current program source for the boundary's role and any remaining criteria. A single address can fall inside several overlapping incentive boundaries at once.
Boundaries are precise and change over time, so whether a specific address falls inside a mapped zone always depends on that exact address. The fastest way to check is to run a free snapshot for the parcel you have in mind — mapped coverage is a location signal, not an eligibility determination.
Range on file · ITC: +2 or +10 percentage points; PTC: +10%
Current published terms as of 2026-10-09
- +Investment credit bonus of 2 or 10 percentage points, depending on prevailing-wage/apprenticeship requirements or an exception
- +10% increase to Production Tax Credit values
- +May stack with other clean energy credit provisions when the project qualifies
- 1Confirm the project site is in a designated energy community on the official federal map
- 2Confirm the project technology and timing qualify for the underlying ITC or PTC
- 3Document the designation as of the applicable beginning-of-construction or placed-in-service date
- 4Work with a tax professional to claim the bonus under current IRS guidance
Check the site on the official energy communities map, then confirm project fit with a tax advisor
- Project location documentation
- Energy community designation evidence for the applicable date
- Underlying ITC or PTC substantiation
- Tax advisor review of current IRS guidance
This page is a starting point, not eligibility, legal, or tax advice. Verify current requirements, deadlines, and boundaries with the administering agency before applying or spending money — program rules and funding change over time.
- Web
- Visit site ↗
Last verified 2026-10-09
Created by the 2017 Tax Cuts and Jobs Act and made permanent by the One Big Beautiful Bill Act (OBBBA, Pub. L. 119-21, July 2025) on a 10-year designation cycle. OZ 2.0 governor nominations underway July 2026; new OZ 2.0 map effective 1/1/2027. Existing OZ 1.0 tracts remain valid through 12/31/2028.
WOTC LAPSE NOTICE: The Work Opportunity Tax Credit (WOTC) expired December 31, 2025. As of July 2026 it is in legislative hiatus — no new credits are available for employees starting work on or after January 1, 2026. WOTC has historically been reauthorized retroactively; employers are advised to CONTINUE pre-screening new hires using IRS Form 8850 to preserve potential retroactive eligibility. Credit value: $2,400–$9,600 per qualifying hire.
The New Markets Tax Credit program was made permanent by OBBBA (July 2025) with $5 billion in annual allocation authority — eliminating the prior reauthorization risk. The 39% federal tax credit on qualified equity investments through certified CDEs continues without sunset. CY 2026 application round not yet open as of July 2026. NMTC flows through Community Development Entities (CDEs), not directly to businesses — projects typically $5M+.
Qualified affordable-housing projects in HUD-designated QCTs may use up to 130% of otherwise eligible basis for LIHTC calculations, subject to allocation and tax rules. HUD published 2027 designations on October 6, 2026; their application depends on allocation, bond and placed-in-service timing.