Clean Energy NH just launched a Direct Pay Resource Guide to help communities access clean energy tax credits through the new IRS Elective Pay (a.k.a. Direct Pay) system. CENH’s Energy Circuit Rider team will be updating this resource over time as we learn more about the steps involved in this new program.
Why? Clean Energy NH has been getting a lot of inquiries recently about Direct Pay. Thanks to the Inflation Reduction Act (IRA), public and tax-exempt entities can access clean energy tax incentives for the first time.
According to cleanenergy.gov/directpay, that means governments, nonprofits, schools, churches, public power, rural coops, and more are now eligible to receive cash from the IRS,
including for generating clean electricity through solar, wind, and battery storage projects; building community solar projects that bring clean energy to neighborhood families; installing electric vehicle (EV) charging infrastructure; and purchasing clean vehicles for state or city vehicle fleets.”
This is a big deal for New Hampshire.
Until now, towns wishing to invest in solar energy had to utilize Power Purchase Agreements (PPAs) and other mechanisms to take advantage of federal tax incentives for renewable energy. Now, the IRS can pay towns directly for the value of the tax credits they earn.
Projects completed in 2023 or later are eligible for credits through Direct Pay, so a number of New Hampshire communities are already completing the required Pre-Filing Registration.
Are you considering using Direct Pay to fund a project in your community? We want to hear from you! Contact Circuit Rider Program Director, Sarah, at sarah@cleanenergynh.org to share your Direct Pay experiences, learning, and questions so we can all learn together.