Direct Pay for Non-Profits

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Learn How Direct Pay & Additional Adders Can Work for You!

Get a free property assessment to learn how your non-profits or municipality can access solar incentives through Direct Pay under the Inflation Reduction Act. Get cash back for solar installations. Use the form or call Solar States at (215) 939-6699.

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Direct Pay for Non-Profits: Accessing Solar Incentives Under the Inflation Reduction Act

Overview

The Inflation Reduction Act (IRA) now allows non-profits and municipalities to receive cash back for solar installations through Direct Pay. This change enables organizations that do not pay federal taxes to benefit financially from solar energy investments.

How Direct Pay Works

  1. Eligibility: Non-profits, municipal buildings, and government organizations can apply.
  2. Filing with the IRS: Eligible entities file with the IRS to claim their cash back.
  3. Cash Grant: Instead of a tax credit, organizations receive a cash grant covering at least 30% of the installation cost.

Example: Brookhaven Volunteer Fire Company

Jon Grant from the Brookhaven Volunteer Fire Company explains:

“It’s pretty amazing. We actually filed with the IRS, and they’re going to give us money back. We don’t pay any income tax, but we’re going to get money back from the federal government as a cash grant for the installation.”

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Additional Benefits

  • Base Rebate: 30% cash back on solar installation costs.
  • Extra Incentives: Additional 10% for low-income communities, energy communities, and projects using American-made materials.

Quotes done online & by phone.

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Steps to Access Direct Pay Funds

Identify the Project and Credit

Identify the Project and Credit: Confirm your project qualifies for IRA tax credits. Gather necessary documentation. Visit IRS.gov/Cleanenergy for more details. Consult a tax advisor if needed

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Complete Your Project

Complete Your Project: Place the project in service to earn the tax credit. The tax year usually corresponds to the calendar year.

Determine Tax Return Due Date

Determine Tax Return Due Date: Tax returns for most tax-exempt and governmental entities are due 4.5 months after the taxable year ends.

 

Pre-Filing Registration with the IRS

Pre-Filing Registration with the IRS: Register with the IRS before your tax return is due to obtain a registration number for your project

 

Receive Your Direct Payment

Receive Your Direct Payment: Payments are issued after your return is processed, either electronically or by mail.

 

 

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About Solar States – DE, PA, NJ, MD

Solar States is a solar installer and educator based in Philadelphia, Pennsylvania. We are a certified B-Corp and Best for the World Nominee in both 2018 and 2019. We can install solar on any roof – residential or commercial – in Delaware, Pennsylvania, New Jersey, or Maryland. If you have any questions about a transition to a sustainable energy system for your property, we can answer them.

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