The energy transition is an increasingly important trend, not just for power generation but also for communities across the U.S. As regions that have been dependent on hydrocarbons begin to shift production to renewable resources, they not only lower global carbon emissions, but also reap new economic opportunities from income-producing renewable energy.
The Energy Community Tax Credit Bonus under the Inflation Reduction Act (IRA) can revitalize economies in areas that have relied on coal, either through employment at coal-fired power plants, or with jobs in the coal mines. U.S. coal mining employment fell more than 77% since 1985 to roughly 40,000 workers in 2020; nearly 15% of that workforce is now at or nearing retirement age.
