The Department of the Treasury has released guidance regarding how smaller entities such as non-profits and local governments can take advantage of renewable project incentives contained within the Inflation Reduction Act. The guidance outlines how small groups such as churches, tribes, schools, and other non-profits can now use a direct pay option when utilizing some of the IRA’s incentives on infrastructure retrofits using more efficient technology.
Previously, similar benefits were only available to larger businesses with a significant federal tax liability. With direct pay an option for receiving these benefits, there will be greater availability of the financial resources to launch these types of projects, work that will likely trickle down to SMACNA contractors. The guidance outlines the eligibility requirements for each of the tax incentives. Over the next few months, representatives from the Biden Administration will embark on an educational tour about how to take advantage of these incentives best and outline the direct pay process.
Click here to read this new guidance.