Inflation Reduction Act – Elective Pay

For those that are new to the Inflation Reduction Act – Elective Pay and are interested in developing a grant application, please consider registering for a traditional Bootcamp.

For those that have been through a Inflation Reduction Act – Elective Pay Bootcamp before or have completed a pre-filing request with the IRS, please consider registering for a bespoke Bootcamp.

Grant Summary

Download the PDF here.


U.S. Internal Revenue Service (IRS)


Environmental Tax Credits

Eligible Applicants

Per the IRS, eligible applicants include tax-exempt organizations, States, and political subdivisions such as local governments, Indian tribal governments, Alaska Native Corporations, the Tennessee Valley Authority, rural electric co-operatives, U.S. territories and their political subdivisions, and agencies and instrumentalities of state, local, tribal, and U.S. territorial governments.

Total IRA Funding

N/A. Total Elective pay-eligible tax credits are uncapped.


The Inflation Reduction Act of 2022 (IRA) provides elective pay (often called “direct pay”) provisions for clean energy technologies. Tax-exempt and government entities will be able to receive a payment equal to the full value of tax credits for qualifying clean energy projects, including work to expand EVs/EV charging, clean energy generation, and housing/commercial building efficiency.

FY24 Grant Funding


Match Requirements

N/A. Elective pay reimburses eligible applicants for a portion of their investment in clean energy. The credit amount varies by tax provision.

Key Dates

Tax-exempt entities and governments must first pre-register with the Internal Revenue Service (IRS) no earlier than the start of the year in which they intend to earn the credit and at least 120 days before the due date for that year’s tax return.

The deadline to file a tax return is typically 4.5 months after the end of the filing entity’s tax year. This is May 15 for most tax-exempt and governmental entities. Pre-registering and filing a tax return are prerequisites for receiving payment.

Key Funding Criteria

Criteria for receiving funding vary by tax provision.

Opportunities for Climate and Racial Wealth Equity

Additional tax credits, also called bonuses, are available for qualifying energy projects. Several tax credits increase by 10 percent or percentage points if projects are located in energy communities.

Eligible Activities

Tax-exempt and government entities can use elective pay for twelve tax credits provided by the IRA. These tax provisions address energy generation and carbon capture, manufacturing, vehicles, and fuels. Eligible projects include clean energy generation, battery storage, community solar projects, electric vehicle (EV) charging infrastructure, and purchasing clean vehicles for state or municipal fleets. Criteria for receiving funding vary by tax provision.