U.S. Treasury is hosting a webinar on direct pay guidance on June 29 at 3 p.m. to provide direct pay guidance from the Inflation Reduction Act (IRA). Because municipalities are tax-exempt entities and cannot generally take advantage of clean energy tax credits, the IRA legislation provides tax-exempt entities, including state and local agencies and instrumentalities such as fire districts or school districts, to get payment in lieu of credits for the credits that an entity would have for deployment of a clean energy project.
Prior to passage of the IRA with these new credit delivery mechanisms, governments, many types of tax-exempt organizations, and even many businesses could not fully benefit from tax credits like those that incentivize clean energy construction.
Further guidance can be found at the White House Direct Pay webpage and the Internal Revenue Service’s Elective Pay and Transferability Frequently Asked Questions.
The webinar is free but requires advanced registration.
Contact: Paul Penna, Senior Legislative Analyst, firstname.lastname@example.org, 609-695-3481, x110.