Clean Energy Credit Services for Nonprofits
The Inflation Reduction Act of 2022 (the IRA) expands existing tax credits for clean and renewable energy and creates new ones. While these tax credits previously were not applicable to nonprofits, the IRA allows tax-exempt entities to receive them through Direct Pay (also known as elective pay).
This means that nonprofit entities, including churches and higher education institutions, are now eligible for certain clean energy credits and could realize significant benefits with the right planning, substantiation, and documentation. Various enhancements are available to maximize the percentage of the credit.
Many types of projects qualify for the credits, including:
- Solar panels
- Windmill projects
- Geothermal energy property
- Qualified fuel cell property
- Qualified microturbine property
- Biogas property
- Waste energy recovery systems
- Energy storage technology systems
- Microgrid controllers
- Combination heat and power systems
- Alternative fuel vehicle refueling stations, including electric charging stations
The IRA also opens up funding opportunities for nonprofits, such as grants and loans for energy efficiency improvements and renewable energy projects.
Knowledgeable Clean Energy Credit Assistance
Whether you are considering a capital project that may qualify for the credits or have already begun one, there are several important considerations and steps to work through.
Our team of experienced nonprofit tax professionals can help you:
- Provide initial consultation to assess a project’s qualification for clean energy credits
- Review vendor proposals to confirm credit eligibility
- Review vendor contracts to verify that they cover the eligibility criteria
- Assess a project’s eligibility for various credit enhancements
- Assemble the documentation to support your credit eligibility
- File your claim
Please contact us with questions and to learn more.
Helpful Clean Energy Credit Resources
Watch these recorded webcasts on demand to learn more about the clean energy credits, key considerations for nonprofits, the types of projects that qualify, and the requirements and enhancements for the various credits:
Clean Energy Credits for Nonprofit Organizations
Clean Energy Projects that Qualify for the Clean Energy Credits – Recorded Webcast