Nonprofits are now eligible for clean energy tax breaks

For years, many U.S. colleges and universities invested in clean energy initiatives to fight climate change and lower utility bills. But nonprofit institutions weren’t eligible for clean energy tax breaks. The Inflation Reduction Act changed that. Now, schools not subject to federal income tax generally are eligible for clean energy credits if they use an “elective pay” system. Eligible institutions complete a prefiling registration and file a tax return with the IRS. If the return is approved, the IRS pays the entity the credit amount. Potential elective pay projects include solar and wind farms, battery storage programs, and electric vehicle charging stations. Contact us to learn more.