H.R. 6474: To amend the Internal Revenue Code of 1986 to expand the meaning and eligibility of ener… (119th Congress) Bill Summary

This bill proposes changes to the Internal Revenue Code of 1986, focusing on expanding the definition and eligibility criteria for “energy communities.” Here’s a breakdown of the main components of the bill:

Expansion of Energy Communities

The bill aims to broaden the scope of what qualifies as an energy community. It particularly expands the eligibility for increased rates on renewable electricity production and clean electricity investment credits.

Increased Renewable Electricity Production Credit Rate

Specifically, it modifies Section 45(b)(11)(B)(iv) of the Internal Revenue Code. The proposed amendment adds the phrase “or non-metropolitan statistical area” after “a metropolitan statistical area.” This means that both metropolitan and non-metropolitan areas would be eligible for the increased renewable electricity production credit rates, thus allowing more locations to qualify for these benefits.

Increased Clean Electricity Investment Credit Rate

The bill also alters Section 48E(a)(3)(A)(i) of the Internal Revenue Code by removing a certain clause that limits the application of increased clean electricity investment credit rates. This change is intended to enhance the investment incentive for clean energy technologies.

Effective Dates

The amendments regarding the increased renewable electricity production credit rate and the clean electricity investment credit rate will take effect as if they were included in specific sections of Public Law 119–21, ensuring that the updates are intended to be implemented immediately within the framework of existing law.

Overall Purpose

The overarching goal of the bill is to promote and support the development of renewable energy sources by making it easier for a wider range of communities to access financial incentives.