Direct Pay tax credits promise to add flexibility and efficiency for rural electric co-ops trying to add renewable energy to their grids

The elective pay provisions in the IRA offer rural electric co-ops, municipalities, and other entities an opportunity to receive direct cash funding to build renewable energy projects.  An often overlooked provision of the Inflation Reduction Act (IRA) that can have a major impact on renewable energy development is the passage of “direct pay” tax credits for public and not-for-profit entities. Section 1647 of the IRA provides tax-exempt entities the opportunity…

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