Elective Pay & IRA Tax Incentives Resources Page -

Another Way to Help Pay for Your Clean Energy Projects

Updated October 20, 2025

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Navigating the Inflation Reduction Act (IRA) and its Elective Pay and clean energy credit provisions can feel like learning a new language. We know you have important clean energy projects to launch, and you need clear, reliable information to access these credits, and help keeping track of changes and guidance, which is why we cut through the complexity so you can focus on building your project. 

This resource page provides you with straightforward and practical resources on Elective Pay and the clean energy credits - from hands-on forms and L4GG analysis, to official IRS guidance and guidance from partners - so that you have the resources and support you need to learn about Elective Pay, plan for your project to ensure you meet the requirements of the clean energy credits, or to get started with pre-filing registration and filing a tax return to secure your tax credits.

If You Need Background on Elective Pay and the Credits, Start Here

  • Elective Pay (also known as Direct Pay) is a game-changer for entities that don’t owe federal income tax. Elective Pay is not a tax credit itself; it’s a mechanism that allows tax-exempt entities (including nonprofits, local governments, and schools) to receive the value of certain IRA clean energy tax credits as a direct cash payment from the IRS. This is crucial because tax-exempt organizations can access these incentives, which can significantly reduce project costs (in some cases up to 70% back) and fund more clean energy work. 

    Which Clean Energy Tax Credits are Eligible for Elective Pay?

    • The investment tax credits or “ITC” - for solar, wind, geothermal, and other projects 

      • Clean electricity investment tax credit under Section 48E 

      • Energy credit under Section 48 

    • The production tax credits or “PTC” - for solar, wind, geothermal, and other projects 

      • Clean electricity production tax credit under Section 45Y 

      • Renewable electricity tax credit under under Section 45 

    • Alternative fuel vehicle refueling property credit under Section 30C for electric vehicle (EV) charging, EV supply equipment, and other projects

    • Commercial clean vehicle credit under Section 45W for certain EV purchases (purchased before October 1, 2025) 

    • Credit for ground-source heat pumps under Section 48

    • And more

    What is the Process to File Once I’ve Completed My Project? 

    Using Elective Pay, tax exempt-entities can receive cash after completing a geothermal, solar, wind, energy storage, or other eligible clean energy project.  Once your project is placed into service, you need to follow a two-step process to receive tax credits: 

    1. Complete a mandatory Elective Pay pre-filing registration with the IRS for the project to receive a unique registration number for each property or facility. 

    2. Use that number to complete and file the appropriate tax returns and claim your clean energy tax credit.

    Important Alert: The Time to Act is NOW

    Recent legislation, H.R. 1 (also known as the “One Big Beautiful Bill Act,” enacted July 4, 2025), accelerates the phase out of many of the clean energy tax credits eligible for Elective Pay and adds new prohibited foreign entity rules to some of the credits that include limits on the sourcing of materials made by Chinese companies. 

    While Elective Pay itself remains intact after H.R. 1, the window of opportunity for tax-exempt entities to claim some of the clean energy tax credits is rapidly closing, so it is important to act before they expire. 

If You Are ready to access Resources, Start here

We have organized over 100 resources into seven clearly labeled, collapsible sections. Click any heading to expand the section and view the full list of resources.