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Eligible: Local Government, Nonprofits, Public Agencies, Tribes

Apply by Dec 31, 2025

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Elective Pay and Transferability

From Internal Revenue Service (IRS)

Tax-exempt and governmental entities can benefit from certain clean energy investment and production credits using new options enabled by legislation enacted in 2022. In some situations, other taxpayers can also benefit from the tax credits in new ways.

  • Overview

    • Type

      Tax Incentive

    • Title

      Elective Pay and Transferability

    • Source

      Internal Revenue Service (IRS)

    • Federal or State

      Federal

    • Award Range

    • Cost Share

      Yes

  • Eligibility

    • Audience

      Local Government, Nonprofits, Public Agencies, Tribes

    • Sector

      All

    • Activity

      Efficiency Improvements, Equipment Purchase/Lease, Project Finance

    • Eligibility

      See eligible projects in Publication 5817-G (6-2023): https://www.irs.gov/pub/irs-pdf/p5817g.pdf

    • Location

      National

  • Application Process

    • Application Link

      irs.gov

    • Pre-Application?

      Yes

    • Disbursement Method

      Credit on federal taxes

  • Important Dates

    • Application Open Date

      Sep 1, 2024

    • Application Close Date

      Dec 31, 2025

  • Resources & Contacts

    • Technical Assistance Contact

      Lawyers for Good Government tax assistance: https://www.lawyersforgoodgovernment.org/

    • Resources

      Assistance is available from the Lawyers for Good Government through funding provided by WA State. The IRS has detailed information on eligibility and how the program works on their website in Publication 5817 (Rev. 4-2024): https://www.irs.gov/pub/irs-pdf/p5817.pdf

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