Direct Pay - Direct funding vs tax credits for tax-exempt organizations
The topic of the Direct Pay Program came up at some of our lobby meetings, including the fact that it could use more publicity.
It works by giving eligible tax-exempt entities like local governments, schools, hospitals, public utilities, houses of worship, and non-profit organizations access to direct funding for several categories of clean energy projects. With added bonuses, funding can cover 30-70% of costs. Â
This is a tweak that was added in the IRA bill to existing incentives for clean energy projects that were previously only available as tax credits to corporations.Â
I found good information about the program at the Congressional Progressive Caucus Center website.
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