The Inflation Reduction Act (IRA) created many new tax incentives for clean energy. The most notable for municipal governments is the option for elective pay, in which local governments can take advantage of rebates as a non-taxable entity. Through elective pay, cities large and small can receive rebates for projects in clean energy and electric vehicles.  

For example:

• Alexandria, VA received rebates for installing an electric vehicle charger;
• Morrisville, NC is leveraging elective pay + stacking with other funding programs to install two solar PV systems;
• Williamsfield, IL received funding via elective pay for installing four DC Fast Chargers and seven Level-2 chargers, plus seven operational EV buses with another one on the way. 

Check out these elective pay resources:

• Internal Revenue Service – User Guide 
• Government Finance Officers Association – IRA Implementation Resources 
• Lawyers for Good Government – Resources  

Smart Surfaces Coalition – The Direct Pay Program One-Pager