Inflation Reduction Act Makes Going Solar Easier
January 27, 2023
The Inflation Reduction Act of 2022 (IRA) has changed the game for nonprofits by creating a direct pay version of the solar Investment Tax Credit (ITC). Now, nonprofits have just as much to gain by going solar as for-profit businesses.
The federal solar tax credit allows for-profit businesses to receive a tax credit worth 30% of their total installation costs when they install solar panels and/or battery storage. The new direct pay option allows not-for-profit organizations to benefit from this incentive even though they do not pay taxes. Non-profits can now receive a direct payment for 30% of their total solar energy system installation costs, making solar installation easier and more affordable.
Any organization that has tax-exempt status with the federal government is eligible for the nonprofit solar tax credit direct pay option. Some examples are:
- Public schools and universities
- Government buildings and organizations
- Charities and other non-profits
- Religious organizations
By going solar, nonprofits can benefit from:
- Electric Bill Savings
- Solar Incentives
- Enhanced Public Image
- Blackout Protection
- Reduced Carbon Footprint