March 5, 2024 – Today, President Biden released final guidance on elective pay (also known as “direct pay”) for clean energy tax credits under the Inflation Reduction Act. With billions of dollars in provisions available, the Inflation Reduction Act will supercharge progress toward an equitable, clean energy economy in cities across the country. Elective pay will enable tax exempt entities including state, local and Tribal governments, public utilities, rural electric cooperatives and non profit organizations to gain access to transformative clean energy tax credits—for the first time ever.
Climate Mayors is dedicated to ensuring that cities have access to the necessary support to actualize ambitious decarbonization plans, build out clean energy infrastructure, lower energy costs for consumers, and promote an equitable and resilient future. From electric vehicle charging infrastructure to solar power to building community wealth through renewable energy, these funds will be highly transformative for the speed and efficacy of the green transition. Now, with the final guidance, local leaders can leverage historic investments to their fullest potential, and take climate action further, faster.
We thank the Biden administration for once again showing unwavering support for city governments and taking into consideration our call for clear elective pay guidelines. Importantly, this final guidance resolves the concerns of many local leaders over the Fiscal Year hangover, by clarifying that any eligible entity who has never filed a tax return can declare the taxable year as the calendar year. With this update, local governments will be able to take full advantage of tax credits towards eligible clean energy projects. With support from the Biden Administration, we look forward to continuing to deploy critical clean energy programs across the nation.
“We’re glad to see the Biden Administration’s steadfast commitment to supporting local leaders in meeting and exceeding our nation’s climate goals,” said Climate Mayors Executive Director, Kate Wright. “Thanks to this final guidance on elective pay, our mayors are empowered to meet this historic moment, leverage tax benefits to support community needs, and bolster cleaner, greener, and more resilient communities for generations to come.”
About Climate Mayors:
Climate Mayors is a bipartisan network that has mobilized more than 750 U.S. mayors since 2014, demonstrating climate leadership through meaningful actions in their communities. representing 46 states and nearly 60 million Americans, the Climate Mayors coalition reflects U.S. cities’ commitment to climate progress. For more information, please visit our website and follow Climate Mayors on X and LinkedIn. For media inquiries please contact climatemayors@fgsglobal.com.
Media Contact: climatemayors@fgsglobal.com