Direct Pay Basics

The OBBBA changed the placed in service deadlines for qualifying wind and solar projects, added foreign entity of concern rules, and an Executive Order eliminated the 5% safe harbor for beginning of construction. This area is evolving rapidly. Be sure to contact your tax advisor.

The IRA created game-changing new funding

for clean energy tax credits and provided a mechanism for tax-exempt entities to receive "refunds" directly from the IRS.

Tax-exempt organizations no longer have to sacrifice a big chunk of tax credit value to partnership investors and transaction costs. This is a tremendous opportunity and will make your projects more affordable.

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Eligible technologies include: solar, wind, electric vehicle charging infrastructure, electric vehicle purchases for government fleets, battery storage, and more.

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Investment Tax Credits (ITCs) may equal 30%–70% of the cost of the energy facility.

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Production Tax Credits are paid per kilowatt-hour produced over the first 10 years of the clean energy project's life. 

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Credits are reduced for tax exempt entities that don't meet domestic content rules or satisfy exceptions, starting in 2024.