Notice 2025-31 publishes information

may use to determine whether they meet certain requirements under the Statistical Area Category or Coal Closure Category as described in Notice 2023-29. See Notice 2025-31, 2025-28 I.R.B. 14 available at IRS.gov/irb/2025-28_IRB#NOT-2025-31 .

Energy community bonus credit rate. An energy community bonus credit rate increase is allowed under section 48E(a)(3)(A) for any qualified investment (with respect to a qualified facility or energy storage technology) that is placed in service during the tax year within an energy community (EC Project). An energy community bonus credit rate increase is also allowed under section 48(a)(14) for an energy project eligible for the credit under section 48 that is placed in service during the tax year within an EC Project.

Section 45(b)(11)(B) provides an energy community bonus credit amount for a section 48E qualified investment in a facility or energy storage technology or section 48 energy project by increasing the percentage provided in section 48E(a)(2) or 48(a)(2) by 2% for meeting the EC Project requirement (see below) or 10% for meeting the EC Project requirement and the requirements described under lines 7 and 8, for Filers Completing Part V or VI .

EC Project requirements. The EC Project requirement is met when a section 48E (a qualified facility or energy storage technology) or section 48 (an energy project) is placed in service within an energy community.

Energy community. Energy community means the following:

A brownfield site as defined in subparagraphs (A), (B), and (D)(ii)(III) of section 101(39) of the Comprehensive Environmental Response, Compensation, and Liability Act of 1980 (42 U.S.C. 9601(39));
A metropolitan statistical or nonmetropolitan statistical area that:

a. Has (or, at any time during the period beginning

after 2009, had) 0.17% or greater direct employment or 25% or greater local tax revenues related to the extraction, processing, transport, or storage of coal, oil, or natural gas (as determined by the Secretary); and

b. Has an unemployment rate at or above the

national average unemployment rate for the

previous year (as determined by the Secretary); or

A census tract or a census tract directly adjoining to such census tract in which:

a. After 1999, a coal mine has closed; or

b. After 2009, a coal-fired electric generating unit has

been retired.

Line 10. Check the appropriate box on line 10. If you checked the box on line 10c, you can’t claim the energy community bonus credit amount.

Lines 11 and 12 IRA 2022 added new section 48E(h) and 48(e), referred to as the low-income communities bonus credit program, to increase the amount of the credit determined under section 48E(a) and section 48(a) with respect to an eligible property.

If you’re claiming a low-income communities bonus credit in Part V or Part VI, go to Filers Completing Part V or Filers Completing Part VI, as applicable, to determine the requirements that must be met to qualify for the credit and to identify which box to check for lines 11 and 12.

Filers Completing Part V

IRA 2022 added new section 48E(h) to authorize the Secretary to establish a program for calendar years 2025 and subsequent years to award allocations of capacity limitation that increase the amount of the clean electricity investment credit determined under section 48E(a) with respect to eligible property that is part of an applicable facility.

Section 48E(h)(1) provides for an increase of either 10% or 20% to the credit under section 48E(a)(2) for facilities that receive an allocation of capacity limitation. The low-income communities bonus credit is only eligible for Part V, Section A filers.

T.D. 10025 provides final regulations regarding clean electricity low-income communities bonus credits amounts for calendar year 2025 and subsequent years.

Applicable facility. Applicable facility means any qualified facility under section 48E(b)(3) that:

Is not described in section 45Y(b)(2)(B) (related to fuel combustion and gasification facilities).
Has a maximum net output of less than 5 MW ac, and
Is one of the following:

a. Located in a low-income community (as defined in

section 45D(e));

b. Located on Indian land, as defined in section

2601(2) of the Energy Policy Act of 1992 (25 U.S.C. 3501(2));

c. Part of a qualified low-income residential building

project; or

d. Part of a qualified low-income economic benefit

project.

Instructions for Form 3468 (2025) 9

Applicable percentage. The increased percentage with respect to categories of applicable facilities is as follows:

Percentage	For an . . .
10%	Eligible property located in a low-income community (as defined in section 45D(e))
10%	Eligible property located on Indian land, as defined in section 2601(2) of the Energy Policy Act of 1992 (25 U.S.C. 3501(2))
20%	Eligible property that is part of a qualified low-income residential building project
20%	Eligible property that is a qualified low-income economic benefit project

Eligible property. Eligible property means a qualified investment with respect to any applicable facility.

Credit reduction. The increase in the credit will not exceed the amount that bears the same ratio as the environmental justice capacity limitation allocated to such facility bears to the total megawatt nameplate capacity of such facility, as measured in direct current.

Lines 11 and 12. Check the appropriate box on line 11. If you checked the box on line 11a, 11b, 11c, or 11d, you must enter the section 48E(h) control number on line 11e.

with respect to limitation is:	o categories of eligible property and
Percentage	For an . . .
10%	Eligible property located in a low-income community (as defined in section 45D(e))
10%	Eligible property located on Indian land, as defined in section 2601(2) of the Energy Policy Act of 1992 (25 U.S.C. 3501(2))
20%	Eligible property that is part of a qualified low-income residential building project
20%	Eligible property that is a qualified low-income economic benefit project

If you are a pass-through entity, enter the originating pass-through entity’s EIN, if applicable, on line 11f.

You must also check the appropriate box on line 12 and enter the nameplate capacity for your facility.

Filers Completing Part VI

If you applied for and received an allocation from the low-income communities bonus credit program from either 2023 or 2024, you may increase the amount of your energy credit for a qualified solar or wind facility computed in Part VI, sections B, F, I, or L. Only filers who applied for and received an allocation of environmental justice solar and wind capacity limitation and properly placed in service a qualified solar or wind facility are eligible to claim an increased credit.