Final Provisions for 2024 IRA Tax Credits Confirmed
The US Department of the Treasury and the Internal Revenue Service finalized key provisions to the Inflation Reduction Act tax credits, including two new ways for organizations to access credits. This is an important step toward making 2024 IRA tax credits more accessible and functional for businesses making energy-efficient upgrades.
2024 IRA Updates from the IRS
A joint effort from the Treasury and IRS finalized plans to make credit delivery easier via two new systems. The newly improved payment mechanisms include elective pay (also known as direct pay) and transferability. The credit delivery methods apply two several qualifying entities, including:
Local, state, and Tribal governments
Non-profit organizations
Puerto Rico and all US territories
Other qualifying entities using clean energy tax credits
What Do the New Guidelines Change?
Previously, these organizations could not receive energy-related funds from the IRA through these payment methods, resulting in considerable delays and forcing them to invest time jumping through alternative credit delivery methods. The guideline changes are designed to accelerate the process, enabling qualifying organizations to access funds and complete projects over much shorter timetables.
Tax-exempt and Government Entities Quality for IRA Tax Credits, Too
Too few non-profit and government agencies understand the range of IRA options available. These organizations qualify for 12 clean energy tax credits, including:
The Investment and Production
Electric vehicle costs
EV charging station installation
Related: IRA Extends the Production Tax Credit (PTC)
How Can My Organization Apply?
We’re here to help. Keen Technical Solutions will help you determine which IRA tax credits your organization qualifies for and ensure your project meets qualification standards. You can count on Keen to help you through every step of the energy efficiency process, from manufacturer rebates to IRA tax credits to project completion. It’s a great time to get started; contact Keen Technical Solutions today.