IRA Elective Pay Final Rules Published

On March 5, the U.S. Department of Treasury published final rules on elective pay (also known as “direct pay”) under the Inflation Reduction Act (IRA). Elective pay helps enable eligible entities (e.g. state, local, and Tribal governments; non-profit organizations) to take advantage of clean energy tax credits. In addition to the final rules, Treasury and the IRS also released a proposed rule intended to provide further clarity and flexibility for applicable entities that co-own clean energy projects and would like to utilize elective pay.

GFOA is currently reviewing the final rules and will be providing updates to our resources. To read the final rules, click here, and for more on Tuesday’s release, click here.