Governing reports that new tools are now available to help public officials navigate the tax credits from the Inflation Reduction Act that that reimburse governments for clean energy investments.
According to the article, โunder the โdirect payโ program, the IRS will reimburse public agencies, tribal governments, nonprofits, churches, schools or other tax-exempt entities for projects involving clean energy technologies such as solar, wind and geothermal heat pumps. It also encompasses EV charging stations, electric fleet vehicles and battery storage.โ
While the prospect of these tax credits is tantalizing, most governments – especially entities that serve underserved populations that stand to reap the most benefits from these programs – often arenโt well-equiped to navigate the federal bureaucracy to access them.
Fortunately, a tool developed by Lawyers for Good Government, the Clean Energy Tax Navigator, was designed to make the process easier to understand. Another tool, the Project Finance Hub created by Atlas Public Policy, is a guide to funding sources for energy projects.
These tools are intended to work together to make it easier for not-for-profit and public agencies to navigate the process, and pre-register their projects with the IRS (a necessary step in receiving the funds).
With the enormous opportunity offered by these clean energy tax credits, these tools will allow more communities to access the funding. โThe whole point is to level the playing field,โ says Jillian Blanchard, director of L4GGโs climate change and environmental justice program.
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