Empact adds Energy Community ITC Bonus Credit compliance to software

Energy Community ITC Bonus Credit compliance

Empact Technologies incorporated the June 7, 2024, Inflation Reduction Act (IRA) Energy Community Bonus Credit guidelines, to its tax incentive compliance management platform.

Known as Notice 2024-48, the guidelines released by the U.S. Department of the Treasury and the IRS outline Energy Community Bonus qualification requirements for the “Statistical Area Category” and the “Coal Closure Category” in Notice 2023-29.

Empact combines proprietary SaaS technology with professional services, enabling projects to meet IRS regulatory requirements for prevailing wage and apprenticeship, domestic content, and energy and low-income community incentives. Developers use Empact to secure project construction financing, ensure regulatory compliance, and protect investors from IRS recapture risk

Notice 2024-48 can be used by developers to confirm project qualification for the Energy Community Bonus. Empact can support clients on eligibility requirements, and then manage compliance documentation and verification requirements on clients’ behalf.

“The IRA provides an unprecedented opportunity for community and utility-scale developers, EPCs, and tax equity investors, but keeping up with the evolving guidance and managing project tax compliance is no small task.” says Charles Dauber, CEO and Founder of Empact. “We’re proud to provide a turnkey IRA compliance management system for clients, giving them all-in-one tools and services to ensure they can maximize the tax credits for their projects.”

Energy Community ITC Bonus Credit explained

Empact Technologies software

The IRA’s estimated $1.2 trillion in tax incentives covers three types of credits:

To benefit from the energy community credit, a project must meet requirements for at least one of the three types of energy community sites defined in the Internal Revenue Code:

  1. a brownfield site with limited reuse potential due to the presence of hazardous substances;
  2. a metropolitan statistical area or non-metropolitan statistical area that has (or had at any time after 2009) a specified percentage of employment related to fossil fuels, and an unemployment rate at or above the national average for the past year; and
  3. a census tract (or directly adjoining census tract) in which a coal mine has been closed or a coal-fired energy unit has been retired.

The new version Empact’s software is provided at no additional cost to existing Empact clients, and is available to qualified community and utility-scale developers through a free trial.

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