ENERGY COMMUNITIES TAX CREDIT ADVANCES HYDROPOWER’S GROWTH
Washington, D.C. (April 4, 2023) – U.S. Department of the Treasury today released guidance for the implementation of the Energy Communities bonus credit, which was created under the Inflation Reduction Act (IRA). New hydropower and pumped storage projects, such as development on existing nonpowered dams, are encouraged to leverage the bonus credit, which is valued at up to 10%; in addition to the Investment Tax Credit (ITC) or Production Tax Credit (PTC).
In response to release of the guidance, National Hydropower Association CEO Malcolm Woolf issued the following statement:
”We commend the Biden Administration for its efforts to promote economic redevelopment of Energy Communities. The new guidance and the tools the Administration released will help accelerate the development of new pumped storage hydropower projects and retrofitting nonpowered dams in communities impacted by the decrease in fossil fuel investments. It’s clear the Administration listened to our recommendations and responded to the waterpower industry’s unique issues. As an industry, we view the bonus credit as a jobs creator. Hydropower projects are capital intensive, and often require thousands of highly skilled workers and suppliers.
“Hydropower will continue to play an essential role in our efforts to decarbonize the electric grid, and we look forward to continuing to work with the Biden administration on the implementation IRA.”
For more information on energy community qualifications, go HERE.