October 3, 2024

Pacifica Attorneys Discuss New Clean Energy Funding for Tax Exempt Entities in Guest Post for Municipal Research Services Center

A key provision of the Inflation Reduction Act (IRA) of 2022 made state and local governments, 501(c)(3) nonprofit organizations, tribal governments, and other tax-exempt entities (“tax-exempt entities”) eligible to receive a number of clean energy federal tax credits as direct, elective payments.

Writing as guest authors for the Municipal Research and Services Center (MRSC) Insight Blog, Pacifica attorneys Alison Benge and Stacey Crawshaw-Lewis explain this new source of funding for tax-exempt entities undertaking clean energy projects, and look at project eligibility, how elective payments work, and what a tax-exempt entity must do to claim these benefits.

“Cities, school districts, ports, transit agencies, and other tax-exempt entities have already claimed the elective payments for a range of qualifying projects, including solar installations, waste energy recovery, energy storage, and bus and other fleet electrification,” Alison and Stacey write.

Please follow this link to read their article on the MRSC website.

For questions regarding the IRA’s clean energy federal tax credit provision and other public entity options for funding clean energy infrastructure projects, please reach out to Alison, Stacey, or any member of Pacifica’s public finance team.