New Free Course Announcement: Inflation Reduction Act Solar Provisions: Direct Pay

Elective Pay (more commonly known as Direct Pay) creates a pathway for nonprofit organizations to utilize tax credits. It was included as a provision in the Inflation Reduction Act passed in August 2022. Prior to Direct Pay, it was difficult for tax-exempt organizations to go solar. That’s because the primary incentive to go solar – the federal Investment Tax Credit (ITC) – was a tax credit which they themselves were not eligible for. 

Direct Pay now unlocks the opportunity of solar for nonprofit organizations and other tax exempt organizations, like local municipalities and tribal communities. As professionals in the solar industry already know, investing in solar will pay dividends over time, reducing energy costs and lowering an organization’s emissions and environmental impact. Tapping into the power of solar enables nonprofits to invest more time and money into their mission over the long term.

All solar sales people and project developers should have a working understanding of how the Direct Pay provision works. That’s why HeatSpring instructors Lee Barken, Nicole Withrow and Danielle Mahoney Guthrie of CollectiveSun, have created the new free course – Inflation Reduction Act Solar Provisions: Direct Pay.

What’s Covered

In this free course, the team from CollectiveSun will review aspects of Direct Pay, how to apply, and any updates to be aware of as we move into the 2024 tax year. This information will be helpful for nonprofits who have placed a system in service during the 2023 tax year or are planning to place a system in service in the 2024 tax year. 

Another critical aspect discussed in the course is timing of filings, as well as a review of IRS Forms 990-T, 3800, and 3468 that need to be completed.

Excessive benefit is covered in the course. This is an interesting provision included in the implementation of Direct Pay, which could potentially limit a nonprofit’s ability to claim the Direct Pay benefit.

Finally, the instructors share some solutions to make the nonprofit solar process as seamless as possible as well as answer audience questions from the original live presentation of the information which was in February 2024. 

Who are your instructors?

CollectiveSun is a solar finance company dedicated to serving nonprofit and tax exempt organizations. They have been connecting nonprofits with capital for their projects since 2011, well before the Inflation Reduction Act brought so many more opportunities for nonprofits, like Direct Pay. 

In the past 6 years, they have partnered with over 200 nonprofit organizations nationwide on their solar financing for projects totaling nearly 28 MW. This, of course, has made the CollectiveSun team very familiar with the challenges that nonprofits face going solar as well as the challenges of the solar installation process itself. 

Lee Barken, CPA, LEED-AP is the Chief Community Officer at CollectiveSun. He brings broad industry experience in renewable energy project finance and public policy analysis. Nicole Withrow is Director of Sales at CollectiveSun and she brings with her over 25 years in the tertiary section from Los Angeles to the rural Midwest. Danielle Mahoney Guthrie serves as the Marketing and Communications Manager, orchestrating marketing and communication campaigns for the organization. All three are very passionate about helping nonprofits and mission driven organizations develop economically viable energy projects. 

Learn more and enroll in the free Inflation Reduction Act Solar Provision: Direct Pay course today!