To amend the Internal Revenue Code of 1986 to expand the meaning and eligibility of energy communities for purposes of the increased renewable electricity production and increased clean electricity investment credit rates.

What Would Change

Today, only certain areas qualify as "energy communities" for higher tax credits on renewable and clean electricity projects, often limiting eligibility to larger cities. This bill would expand that definition to include non-metropolitan (rural) areas and modify other criteria, making more communities eligible for these enhanced tax breaks. These changes would apply retroactively to the dates of earlier laws, meaning projects that started under the old rules could still benefit.