Clean Energy Tax Incentives for Tax-Exempt and Governmental Entities

The Inflation Reduction Act (IRA) was signed into law in August 2022, introducing significant enhancements to federal energy tax credits for various clean energy technologies. These technologies include solar power, battery storage, alternative energy vehicles and charging stations, cogeneration, and energy-efficient buildings.

The IRA introduced new tax credits for investments in clean energy technologies like biogas property. The act allows tax-exempt organizations and certain government entities to benefit from these incentives. It also introduced a direct pay option, enabling these organizations to receive direct payments from the federal government if they don't have tax liabilities to offset the credit amounts. These clean energy incentives and direct pay provisions are generally available for eligible tax-exempt and government entities starting from the tax year beginning after December 31, 2022. Download the below pdf to learn more.