Elective pay (often referred to as direct pay) is a new mechanism that allows tax-exempt entities to take advantage of federal clean energy tax credits. Examples of eligible entities that can now receive payment for a portion of their clean energy investments include:
In line with its mission, the Michigan Infrastructure Office Technical Assistance Center (TAC) is committed to providing technical assistance and educational resources for elective pay-eligible entities to help draw federal infrastructure money to Michigan's communities.
Learn more about how your organization can use elective pay to get reimbursed for the investments it's making by checking out our fact sheets and other resources below.
Sign up for updates on what the TAC is doing to support eligible entities on elective pay.
Email your questions on Elective Pay to mieog-michiganinfrastructure@michigan.gov.
"The [solar] project was $59,000, and we are looking at getting 30-40% back through the tax credits. Given that, it wasn’t a hard decision. Our vestry was really supportive. Applying for the direct pay was not difficult through the IRS website. They were very responsive regarding what we sent them, and whether it was appropriate, and whether they needed additional information. " - Wendy Heeden, Vestry Warden, St. Philip’s Episcopal Church, Beulah, MI
"The Inflation Reduction Act (IRA) expanded Investment Tax Credit (ITC) opportunities to include non-profit organizations like Michigan State University (MSU). As a public, research-intensive, land-grant university funded in part by the state of Michigan, such incentive opportunities are crucial. They enable us to enhance our campus infrastructure more cost-effectively, supporting outstanding education and world-class research." — Sherri Jett, Interim AVP of Real Estate & Capital Planning Director of Utilities, Michigan State University
"The Direct Pay provision is a powerful tool for local governments and nonprofits to rapidly grow, scale, and expand their clean energy investments. It’s a learning curve to figure out how to take advantage of this exciting provision but once we figured it out, it’s sure to bring significant savings and investments opportunities for our community.” — Missy Stults, PhD., Sustainability and Innovations Director, City of Ann Arbor
Learn about Elective Pay in this recorded webinar from January 2025.
This presentation provides an overview of certain Inflation Reduction Act tax provisions for general information purposes only.
You can also view the PowerPoint slides from this presentation.
Learn about Elective Pay for Schools in this recorded webinar from April 2025.
Please choose your tax year from the menu on the left below to get the correct recommended pre-registration and filing deadline dates.
| Without extension | With extension | ||
|---|---|---|---|
| IRS- recommended date for completing pre-registration | Filing deadline | IRS- recommended date for completing pre-registration | Filing deadline after extension |
| April 15, 2024 | August 15, 2024 | October 15, 2024 | February 15, 2025 |
| Without extension | With extension | ||
|---|---|---|---|
| IRS- recommended date for completing pre-registration | Filing deadline | IRS- recommended date for completing pre-registration | Filing deadline after extension |
| July 15, 2024 | November 15, 2024 | January 15, 2024 | May 15, 2025 |
| Without extension | With extension | ||
|---|---|---|---|
| IRS- recommended date for completing pre-registration | Filing deadline | IRS- recommended date for completing pre-registration | Filing deadline after extension |
| October15, 2024 | February 15, 2024 | April 15, 2025 | August 15, 2025 |
| Without extension | With extension | ||
|---|---|---|---|
| IRS- recommended date for completing pre-registration | Filing deadline | IRS- recommended date for completing pre-registration | Filing deadline after extension |
| January 15, 2025 | May 15, 2025 | July 15, 2025 | November 15, 2025 |
The following are recordings from previously-held office hours, where participants were offered a block of time to have specific questions answered.
