IR-2023-118, June 15, 2023 WASHINGTON — The Internal Revenue Service today issued Notice 2023-45PDF, which updates Notice 2023-29PDF, that describes certain rules that the IRS intends to include in forthcoming proposed regulations for determining what constitutes an energy community for the production and investment tax credits. Notice 2023-45 addresses the update to Notice 2023-29PDF that occurred on April 7, 2023, which added to Section 4.01(2), Special Rule for Beginning of Construction, clarifying that this guidance applies to taxpayers that begin construction on or after Jan. 1, 2023. Notice 2023-45 also adds an additional clarification pertaining to the brownfield site safe harbor under Section 5.02(3). Specifically, for projects with a nameplate capacity of not greater than 5MW (AC), it is required that a Phase I Assessment identify the presence or potential presence on the site of a hazardous substance or a pollutant or contaminant. Also, the IRS posted frequently asked questions today related to the increased amount of credit for energy communities. These FAQs provide detail on how areas may qualify as an energy community, how to determine whether a project is in an energy community, and brownfield sites for purposes of the energy community bonus credit. Finally, the IRS released Notice 2023-47PDF, that publishes information that taxpayers may use to determine whether they meet certain requirements under the Statistical Area Category or the Coal Closure Category in Notice 2023-29 for purposes of qualifying for energy community bonus credit. These lists are provided in Appendix 1PDF, Appendix 2PDF and Appendix 3PDF of this notice. Appendices 1 and 2 of this notice pertain to the Statistical Area Category, and Appendix 3 of this notice pertains to the Coal Closure Category. More information can be found on the Inflation Reduction Act of 2022 page on IRS.gov.