Inflation Reduction Act Resource Hub

Resources for Ohio Community Organizations

"The Inflation Reduction Act presents a significant opportunity for community organizations in Ohio to invest in clean energy initiatives and reduce their carbon footprint, contributing to a more sustainable future. Tax-exempt organizations looking to electrify their vehicle fleet, install electric vehicle charging infrastructure, invest in solar and energy storage, or implement other green technologies can now take advantage of available credits to reduce their cost burden and increase their impact for years to come. 

Additionally, organizations that serve low-income or energy communities may qualify for the "Low-Income Communities Bonus Credit Program" adder, which can significantly increase project savings. Tax advisors can assist in planning energy credits and ensuring that proper credit rates, bonus rates, and other adders are correctly applied to maximize savings. It is also crucial to maintain documentation, record-keeping, and substantiation requirements for prevailing wage and apprenticeship requirements, as these will be critical in ensuring compliance."

How can non-profit organizations leverage direct pay tax credits available through the IRA?

Under the Inflation Reduction Act, a new section 6417 was added to the Internal Revenue Code. This section enables eligible entities, including tax-exempt organizations, to convert certain tax credits (e.g. clean energy and electric vehicle tax credits) into direct payments. Tax-exempt organizations can take advantage of this new opportunity by making investments in sustainability and renewable energy. Starting from tax years after December 31, 2022, eligible entities can choose to make elective payments for applicable credits. However, further clarification is necessary regarding the form(s) and/or process for making these payments, as it is a novel procedure for tax purposes.

Disclaimer: The tax credit information contained within this website is provided for informational purposes only. It is not intended to substitute expert advice from a professional tax/financial planner or the Internal Revenue Service (IRS).