The IRA created the ability for tax exempt entities to use direct payments, or elective pay, for the full value of clean energy and decarbonizing technology tax credits. For the first time, tax-exempt entities have a pathway to directly participate in developing and owning new clean energy and other eligible projects, rather than being dependent on power purchase agreements. This ownership option can be particularly attractive as the tax credits can be combined with grants, forgivable loans, and stacked incentives/adders to greatly reduce capital expenditures.

However, making the most of clean energy tax credits utilizing direct pay will require tax exempt entities to master the rules of this new game. Given the large cohort of tax credits available that are applicable to direct pay, each with specific guidelines, utilizing the direct pay provision to maximum effect requires specialized advice from experts who can walk tax exempt entities through the process, explore alternatives, and outline strategies for optimizing value, mitigating risk, and avoiding potential missteps.

Infocast has put together Direct Pay: Clean Energy Incentives for Tax Exempt Entities to provide exactly the state-of-the-art information that tax exempt entities and their partners will need to get the full benefit of this revolutionary new regime. This unique event will:

• Break down this new opportunity into easily understandable steps, walking attendees through the risks and how to mitigate them, and answering questions surrounding IRS compliance, financing, partnerships, and every other issue that will need to be addressed to take advantage of elective pay for clean energy and help those entities achieve their decarbonization goals.
• Discuss and analyze risk mitigation strategies holistically, covering every phase of a project’s planning, financing, construction, and completion.
• Explain the full range of financing options, including grants and federal loans, that are available to tax-exempt entities.
• Lay out the pros and cons of using partnerships to facilitate these projects and give best practices for ensuring that these partnerships are successful, with an emphasis on tax credit compliance documentation.
• Feature representatives from the IRS who will walk attendees through the steps needed to register for elective pay and give a run-down on what a tax-exempt entity needs to do to be eligible for and to finally receive their tax credit payment.