Integrating Elective Pay Tax Credits into Government Procurement and RFPs

Introduced in the Inflation Reduction Act, elective pay (also known as “direct pay”) enables tax-exempt entities to receive federal climate and clean energy tax credits as direct cash refunds from the IRS. This year alone, elective pay will likely bring back hundreds of millions of dollars to non-profits, Tribes, states, local governments, and rural electric cooperatives across the country for projects they completed in 2023. As interest in and knowledge of elective pay grows, eligible entities are starting to consider how they can maximize the financial benefits of elective pay by planning for it from the very beginning of their projects.

This webinar will cover how tax-exempt entities can fully integrate elective pay into their existing procurement and bidding processes. Based on their collaboration in the Lighthouse Cohort, representatives from WRI, Lawyers for Good Government, and the Government Finance Officers Association will share what they have learned about the most important considerations for using elective pay. Their presentation will cover the basics of elective pay; key tax credit rules, regulations, and processes that impact purchasing; and strategies for internal coordination around elective pay. Additionally, L4GG will be discussing RFPs and will share information on upcoming draft sample RFP language.

Speakers:

• Ian Goldsmith, Clean Energy Specialist, WRI
• Jillian Blanchard, Director, Climate Change and Environmental Justice Program, Lawyers for Good Government
• Emily Brock, Director, Federal Liaison Center, Government Finance Officers Association
• Mike Mucha, Deputy Executive Director, Government Finance Officers Association