The IRS has a new online tool for tax-exempt entities funding for installing solar panels. This tool is called the IRS Energy Credits Online pre-filing registration tool. It’s for those who want to receive a direct payment of the Solar Investment Tax Credit.
The Investment Tax Credit (ITC) is a benefit for using clean energy. The IRS has made it easier for certain organizations, like local governments and nonprofits, to get money from this credit. They call it “elective pay” or “direct pay.”
To get this payment, you need to use the IRS Energy Credits Online tool. It helps you complete a registration process and gives you a unique ID. When you file your taxes, you have to include this ID to receive elective payment of the clean energy credit.
If you have questions or need more information, you can check the IRS Energy Credits Online user guide and video tutorial. The Treasury has also issued guidance on elective pay, which can be found here. You can also find helpful information on CleanEnergy.gov/directpay.
When you’re ready, apply for solar finance funding today!