Elective (Direct) Pay Information

Big opportunity for tax-exempt organizations!

Your clean energy projects may be entitled to federal refunds through Elective Pay.

What is Elective Pay?

Elective Pay (often called direct pay) allows tax-exempt entities to take advantage of federal clean energy tax credits. These include geothermal, solar, battery storage and wind.

Do you have a clean energy project? Now’s the time to act. Base elective pay credit is 30%, with additional bonuses up to 60%. Check with an Elective Pay Ambassador to find out how much your project may be qualified for.

Contact your local Elective Pay Ambassador Kim Heumann heumannk@2030districts.org.

Learn more at MIO-TAC

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Watch this video to see how the Washtenaw Intermediate School District (WISD) took advantage of elective pay to receive $90,000 back on their solar project!

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The Direct Pay provision is a powerful tool for local governments and nonprofits to rapidly grow, scale, and expand their clean energy investments. It’s a learning curve to figure out how to take advantage of this exciting provision but once we figured it out, it’s sure to bring significant savings and investments opportunities for our community.
Missy Stults, PhD.Sustainability and Innovations Director, City of Ann Arbor

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Elective pay dollars make it possible for Washtenaw County to directly benefit from clean energy tax credits and allow us to advance renewable energy projects faster. The program strengthens the financial case for renewable energy projects that provide direct benefits not only for County Operations, but for the community as a whole.
Mary BraunEnergy and Sustainability Coordinator in Washtenaw County Facilities Management

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Experience of Using Elective Pay for Solar Panel Installation
In Spring 2024, the First Unitarian Universalist Congregation of Ann Arbor expanded its solar array by 268 panels, for a total of 380 panels which now generate 99% of the facility’s electricity.
To help cover the cost, we filed for a 30% Elective Pay reimbursement. The two-step process was fairly straightforward, with many online explanations available.
We experienced a delay before receiving the reimbursement, but the payment included interest for the interim. Our accountant filed the forms in March 2025, I called the IRS to check on the status of our application in June, and we received our check (with interest) in November.
I would urge applying for the funds. Bridge loan funding is available to cover the period between paying the solar installer and receiving the IRS reimbursement, if needed.
First Unitarian Universalist Congregation of Ann ArborEd Lynn, Former Interim Administrator

Webinar Recordings

Elective Pay Webinar 1/27/26