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.
In November 2025, MIO TAC launched its Elective Pay Ambassador Program (EPAP), which supports Elective Pay experts located at nonprofits in communities across Michigan. Ambassadors receive MIO TAC training on Elective Pay and can answer eligible entities’ questions about making use of the tax credits. The Ambassadors are also well versed in the technical assistance the TAC can offer to eligible entities in Michigan. Find the Ambassador responsible for your area below and reach out to them about your clean energy projects today!
Ambassador name: Krystle Baecker
Counties covered: all counties in the Upper Peninsula
Ambassador bio: Krystle Baecker is the Elective Pay Ambassador for the Upper Peninsula region. Krystle began with the Superior Watershed Partnership as a MI Healthy Climate Corps member and now works as a Climate & Energy Technician. In her role, Krystle facilitates public outreach and education, conducts environmental monitoring, works to improve the energy efficiency of rural homes, and shares vital resources with community members to help them live more affordably and comfortably.
Krystle is excited to be an ambassador because she has heard firsthand about the need for technical assistance in navigating the elective pay program, and she is looking forward to helping eligible entities across the Upper Peninsula invest in clean energy.”
Why Krystle is excited to be an Ambassador: Krystle is excited to be an ambassador because she has heard firsthand about the need for technical assistance in navigating the elective pay program, and she is looking forward to helping entities across the UP receive reimbursements for their clean energy investments.
Host organization bio: The Superior Watershed Partnership (SWP) is a non-profit organization serving all 15 counties and all 5 Tribal Nations in the Upper Peninsula of Michigan. The mission of the SWP is protecting the Great Lakes, assisting communities, and helping people. As an award-winning Great Lakes non-profit organization, SWP has set national records and implements innovative, science-based programs that achieve documented, measurable results. The SWP has been recognized by the US Environmental Protection Agency, Environment Canada and the Lake Superior Bi-national Program as a leader in developing more resilient Great Lakes communities by providing technical, educational, and monitoring assistance on a variety of Great Lakes protection initiatives, with emphasis on Lake Superior, Lake Michigan, and Lake Huron. In addition, SWP implements a wide range of energy services throughout the Upper Peninsula including low-income energy assistance, residential and municipal solar installation, home energy assessments, high-speed electric vehicle charging station installation, energy outreach and education and more!
Contact: krystle@superiorwatersheds.org
Ambassador name: Stephanie Marchbanks
Counties covered: Emmet, Charlevoix, Antrim, Leelanau, Benzie, Grand Traverse, Kalkaska, Manistee, Wexford, Missaukee
Ambassador bio: Stephanie has worked as a Community Planner at Networks Northwest for over four years. She assists with a variety of local and regional governmental planning projects, covering topics such as recreation, materials management, natural hazard mitigation, land use, economic development, special studies, and grant applications and management.
She holds a B.S. in Environmental Studies and Applications from Michigan State University, a M.S. in Urban Planning from Wayne State University, and is a Certified Planner by the American Institute of Certified Planners. Stephanie’s previous experience in the planning field includes positions held as a community development planner for Northeast Michigan Council of Governments and as a recreation and trail planner for the Oakland County Parks and Recreation Commission. Prior to pursuing an urban planning degree, she spent over four years working as an environmental consultant in the Metro Detroit region.
Why Stephanie is excited to be an Elective Pay Ambassador: I embrace this opportunity to help our local governments and other community tax-exempt entities pursue these valuable tax credits for their clean energy projects and look forward to sharing their success stories to inspire future clean energy endeavors!
Host organization: Networks Northwest is a 10-county public agency providing workforce development, economic development, and regional planning services in Antrim, Benzie, Charlevoix, Emmet, Grand Traverse, Kalkaska, Leelanau, Manistee, Missaukee, and Wexford counties. The goal of Networks Northwest's Community Development Department is to be a planning resource, enabling and enhancing the region's ability to preserve and create high quality of life conditions. For more information on our work, please visit: www.nwm.org/community
Ambassador name: Wendy Berg
Counties covered: Mason, Lake, Osceola, Oceana, Newaygo, Mecosta, Muskegon, Montcalm, Ottawa, Kent, Ionia, Allegan, Barry
Ambassador Bio: Wendy Berg is a LEED Green Associate with a Bachelor’s degree in Environmental Resource Management and Environmental Studies from Western Michigan University. She has served as the Events and Membership Manager for the Michigan Green Building Council (MiGBC) for the past seven years, where she leads event planning, membership engagement, and program development initiatives that advance sustainable design and green building practices across Michigan. With more than fifteen years of experience in event management, community engagement, and program coordination, Wendy is passionate about environmental conservation, renewable energy, and projects that mitigate climate change and reduce energy consumption. A lifelong nature enthusiast and Upper Peninsula native, Wendy enjoys open-water swimming and exploring Michigan’s lakes and trails.
Why Wendy is excited to be an Ambassador: I’m thrilled to serve as a Solar Ambassador and support Michigan communities in adopting clean energy solutions that reduce carbon emissions and protect our environment.
Host organization: Founded in 2004 as the U.S. Green Building Council of West Michigan, Michigan Green Building Collaborative fosters collaboration between stakeholders, shared resources, hosting conferences, and establishing cornerstone initiatives that cultivate a sustainable future.
In 2024, the organization transitioned to the Michigan Green Building Collaborative (MiGBC) to expand its focus to be state-wide. Over the years, they have acted as thought partners on numerous initiatives across the state, a role they are dedicated to continuing and expanding. They continue to focus on education, tools, and specialized resources to support their growing network.
The MiGBC’s mission is to transform the way buildings and communities are designed, built, and operated, in a way that improves the quality of life in Michigan. They believe in the power of partnership to create lasting impact.
Contact: wendy@migbc.org
Ambassador name: Stephanie Hoffman
Counties covered: Van Buren, Kalamazoo, Calhoun, Berrien, Cass, St. Joseph, Branch
Ambassador bio: Stephanie Hoffman is an accomplished nonprofit executive, housing expert, and equity-centered leader with nearly twenty years of experience building community-driven solutions in Kalamazoo. As Program Director for the Kalamazoo Climate Crisis Coalition, she, supervises staff, and oversees equity-based program design. Her work focuses on strengthening homeowner support systems, deepening partnerships with housing organizations, and ensuring accessible, anti-racist approaches to climate and community resilience.
Stephanie previously served as Co-Executive Director of the Stara Collaborative (formerly the Kalamazoo Justice Hub), where she helped develop shared leadership structures, fiscal sponsorship processes, and community partnerships rooted in equity and belonging.
From 2006 to 2022, Stephanie advanced through multiple leadership roles at Open Doors Kalamazoo, becoming Executive Director. She oversaw 158% budget growth, strengthened donor engagement, expanded supportive housing programs, guided the COVID-19 response, and created equity-based organizational tools and practices.
Beyond her professional roles, Stephanie is deeply committed to civic leadership. The Blueprint for Peace Council, the City of Kalamazoo Civil Rights Board, and more. In 2021, she was elected to the Kalamazoo City Commission.
Stephanie Hoffman is recognized for her ability to bridge systems, center community voices, and lead transformational work grounded in dignity, justice, and cultural humility.
Why Stephanie is excited to be an Ambassador: I am excited to become an ambassador because this opportunity allows us to share valuable information and resources throughout Southwest Michigan, helping make our communities climate-ready for future generations.
Host organization: The Kalamazoo Climate Crisis Coalition (KCCC) initially formed as a grassroots group of individual citizens and later grew to include more than 40 affiliate businesses and organizations aligned with our concern about our regional response to the changing climate. Since its inception in 2019, KCCC organized completely by volunteer-led campaigns, resulting in the successful passage of Climate Emergency Declarations by Kalamazoo County, City of Kalamazoo, Kalamazoo Township, Oshtemo Township, City of Portage, and City of Battle Creek, and secured 501(c)(3) non-profit status for the organization. Since 2024, KCCC has recruited board and staff who reflect the abundant diversity of our community, critical to delivering on our mission to mobilize collective action to achieve immediate and drastic reductions in greenhouse gas emissions and rapid adoption of renewable energy through a transition grounded in social, racial, economic, and environmental justice.
Contact: shoffman@kzooclimate.org
Counties covered: Clare, Gladwin, Arenac, Isabella, Midland, Bay, Gratiot, Saginaw
Ambassador Bio: Coming soon!
Host organization: Middle Michigan Development Corporation is the primary economic development driver for Clare, Isabella and Osceola counties. Additionally, through this program we will be assisting all of Region 5 with connecting with EPAP resources.
Contact: kati.mora@mmdc.org
Ambassador Name: Mike Wilson
Counties covered: Clinton, Eaton, Ingham
Ambassador bio: Growing up in a house of attorneys, Mike learned the importance of clarity from an early age. Many dinner conversations were spent wrangling over the accurate usage and meaning of words. Mike delved into the family thesaurus to ensure he could express himself clearly and intelligently. Those friendly discussions over correct verbiage instilled in him a love of language that he has carried into his professional career.
As the director of finance and compliance at Michigan Saves, Mike employs his penchant for precise wording to ensure the organization adheres to multitudinous federal, state, and local regulations. He oversees the compliance management and program reporting functions and conducts risk assessments and internal audits for conformity with relevant laws and directives. Mike also assists the CFO with budgeting, audit, and reporting functions, and oversees the elective pay bridge financing program.
Mike came to Michigan Saves from the Michigan Department of Labor and Economic Opportunity, where he served as a financial compliance specialist for nearly seven years. He conducted compliance audits of Michigan Works! agencies and other nonprofits across the state of Michigan. He also chaired the infrastructure funding agreement program, which encourages local government partners and nonprofits to contribute to the upkeep and operation of workforce development centers statewide."
Why Mike is excited to be an Ambassador: Mike is excited to partner with MIO TAC to educate municipalities, houses of worship, and non-profits on the benefits of elective pay and provide entities with opportunities to claim tax credits while working toward a cleaner, more energy-efficient Michigan.
Host organization: Michigan Saves promotes accessible, equitable, and just investments in energy efficiency and clean energy to support healthy and thriving communities. As the nation's first nonprofit green bank, Michigan Saves has been a leader in offering flexible financing solutions for credit-challenged Michiganders to obtain more energy efficient homes and businesses.
Contact: mwilson@michigansaves.org
Ambassador Name: Kim Heumann
Counties covered: Livingston, Jackson, Washtenaw, Hillsdale, Lenawee, Monroe
Ambassador Bio: Kim has been working in local government on building resilience and reducing climate impacts. This work has been a driver in her wanting to help communities and organizations move forward on their climate mitigation and adaptation goals.
Why Kim is excited to be an Elective Pay Ambassador: Supporting organizations in their sustainability goals is crucial both for them and in building a sustainability movement that will reshape our society as a whole.
Host organization: Ann Arbor/Washtenaw 2030 is a public-private-nonprofit collaborative working to reduce building related greenhouse gas emissions by 50-65% by 2030 and eliminating emissions by 2040 while increasing Washtenaw County’s competitiveness in the business environment and increasing owners’ return on investment. Learn more on their website: https://2030districts.org/annarbor/ann_arbor-district
Contact: heumannk@2030districts.org
Ambassador name: Lissa Spitz
Counties covered: Livingston, Jackson, Washtenaw, Hillsdale, Lenawee, Monroe
Ambassador bio: Lissa has worked with the Washtenaw/ Ann Arbor 2030 District for two years, helping to reduce greenhouse gas emissions in the commercial building sector. Her prior experience included over 35 years in architecture with a focus on sustainable design. In her spare time she is an artist and a native plant enthusiast, working on reforestation projects.
Why Lissa is excited to be an Elective Pay Ambassador: I think tangible local work towards the thriving and healthy future we want to see is more important than ever. Building relationships with these great tax exempt organizations while helping them get funding for renewable energy projects is a perfect fit!
Host organization: Ann Arbor/Washtenaw 2030 is a public-private-nonprofit collaborative working to reduce building related greenhouse gas emissions by 50-65% by 2030 and eliminating emissions by 2040 while increasing Washtenaw County’s competitiveness in the business environment and increasing owners’ return on investment. Learn more on their website: https://2030districts.org/annarbor/ann_arbor-district
Contact: lissaspitz@2030districts.org
Ambassador name: Mason Christerfield
Counties covered: Oakland, Macomb, Wayne
Ambassador bio: A native Detroiter, Mason works at the intersection of clean tech, sustainability, and data, with a focus on developing true zero-waste, circular systems. His early work in urban horticulture and composting centered on transforming waste into valuable resources and demonstrated the practical power of regeneration. He continues to value hands-on environmental stewardship and the way cultivation grounds communities in nature. In his current role as a data analyst, he leverages benchmarking and performance insights to support building decarbonization and more efficient operations. He believes regeneration and clean energy must advance together as Michigan builds a more resilient future, and he is committed to using data to inform and accelerate that transition.
Why Mason is excited to be an Elective Pay Ambassador: He’s excited to help communities adopt resilient clean-energy solutions and navigate the funding needed to make them possible, especially for organizations that serve the public and historically under-resourced neighborhoods.
Host organization: The Detroit 2030 District is a private–public partnership dedicated to helping building owners and managers reduce energy use, water consumption, and transportation emissions across Detroit’s built environment. It provides benchmarking support, technical assistance, educational events, and cross-sector collaboration to help buildings operate more efficiently and adapt to evolving performance and sustainability standards. Learn more: https://www.2030districts.org/detroit
Contact: masonch@2030districts.org
Ambassador name: Peggy Matta
Counties covered: Oakland, Macomb, Wayne
Ambassador bio: Peggy Matta is a registered architect in the State of Michigan and a project architect who has been involved in the renovation and new construction of commercial, educational and municipal facilities. As a LEED Accredited Professional and former Co-Chair of the Green Schools Committee for USGBC in Detroit, she worked with area schools and districts to bring sustainability to their facilities and programs. She is the Founder and currently a Board Member of the Detroit 2030 District. A native Detroiter, she received her degrees in Architecture and Environmental Studies from the University of Detroit.
Why Peggy is excited to be an Elective Pay Ambassador: I am enthusiastic about assisting organizations that previously lacked access to funding for essential clean energy initiatives. These projects will enable municipalities, houses of worship, schools, and community-based nonprofits to lower their energy costs, allowing them to dedicate more resources to their vital missions.
Host organization: The Detroit 2030 District is a private–public partnership dedicated to helping building owners and managers reduce energy use, water consumption, and transportation emissions across Detroit’s built environment. It provides benchmarking support, technical assistance, educational events, and cross-sector collaboration to help buildings operate more efficiently and adapt to evolving performance and sustainability standards. Learn more: https://www.2030districts.org/detroit
Contact: peggymatta@2030districts.org
"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
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, 2025 | August 15, 2025 | October 15, 2025 | February 15, 2026 |
| 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, 2025 | November 15, 2025 | January 15, 2025 | May 15, 2026 |
| Without extension | With extension | ||
|---|---|---|---|
| IRS- recommended date for completing pre-registration | Filing deadline | IRS- recommended date for completing pre-registration | Filing deadline after extension |
| October 15, 2025 | February 15, 2026 | April 15, 2026 | August 15, 2026 |
| 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, 2026 | May 15, 2026 | July 15, 2026 | November 15, 2026 |
The following are recordings from previously-held office hours, where participants were offered a block of time to have specific questions answered.
Fact Sheets:
Guidebooks:
Lawyers for Good Government resources
Michigan Saves
The IRS refers to organizations that are eligible for using Elective Pay as “applicable entities.” Applicable entities include tax-exempt organizations,* states, and political subdivisions such as local governments, Indian tribal governments and their subdivisions, Alaska Native Corporations, the Tennessee Valley Authority, rural electric cooperatives, U.S. territories and their political subdivisions, and agencies and instrumentalities of state, local, tribal, and U.S. territorial governments.**
*Tax-exempt organizations include any organization described in sections 501 through 530 that meets the requirements to be recognized as exempt from tax under those sections is eligible for elective pay. This includes, among others, all organizations described in section 501(c), such as public charities, private foundations, social welfare organizations, labor organizations, and business leagues. It also includes homeowners associations exempt under section 528.
**Agencies and instrumentalities of state, local, tribal governments include water districts, school districts, economic development agencies, and public universities and hospitals that are agencies and instrumentalities of states or political subdivisions.
Eligible tax credits include:
Energy Credit (48)
Clean Electricity Investment Credit (48E)
Renewable Electricity Production Credit (45)
Clean Electricity Production Credit (45Y)
Commercial Clean Vehicle Credit (45W)
Zero-emission Nuclear Power Production Credit (45U)
Advanced Manufacturing Production Credit (45X)
Clean Hydrogen Production Credit (45V)
Clean Fuel Production Credit (45Z)
Carbon Oxide Sequestration Credit (45Q)
Credit for Alternative Fuel Vehicle Refueling / Recharging Property (30C)
Qualifying Advanced Energy Project Credit (48C)
Take a look at this IRS Fact Sheet for more details.
