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If your organization installed solar panels, EV chargers, or other clean energy equipment in 2025, there’s a federal program that could send you a check for 30% to 70% of what you spent.
The filing deadline for 2025 projects is May 15, 2026 — less than three weeks away.
Here’s what Elective Pay is, who qualifies, and how to get help before the window closes.
Elective Pay (sometimes called Direct Pay) is a provision of the 2022 Inflation Reduction Act that lets tax-exempt organizations claim clean energy tax credits as actual cash payments.
Historically, tax credits were only useful to entities that paid federal income taxes — which meant schools, nonprofits, churches, and local governments got nothing.
Elective Pay changed that. Now those organizations can file a return, claim the credit as an “overpayment,” and receive a check from the IRS. The program has been available since 2023.
Tax-exempt organizations of all kinds: nonprofits, houses of worship, school districts, local governments, tribal governments, rural electric cooperatives, public hospitals and universities, and more. If your organization doesn’t pay federal income taxes, you’re likely in.
There are 12 federal clean energy tax credits available through Elective Pay. Deadlines vary significantly by project type, and some have changed recently following passage of the One Big Beautiful Bill Act.
Here’s the current picture:
For more details, see the IRS website. For more on solar opportunities in Michigan, see Planet Detroit’s reporting on grassroots solar programs in Michigan.
A note on new rules: Solar, wind, and energy storage projects now face Prohibited Foreign Entity requirements under the One Big Beautiful Bill Act. Projects can be disqualified if the organization itself, or a certain percentage of the equipment used, has ties to China, Russia, Iran, or North Korea. Projects that started construction before Jan. 1, 2026, are exempt from this rule. If you’re planning a future project, talk to an ambassador about how this affects your equipment sourcing.
One important caveat: Elective Pay is not upfront funding. Your organization must own the equipment (not lease it), and the project must already be placed in service before you can file. Projects that are 100% funded with restricted grant dollars may not qualify.
Roughly 30% to 70% of project costs are returned as cash, depending on which credit applies and whether any bonus credits stack on top.
Once a project is placed in service, you preregister it through an IRS portal. The IRS recommends doing this 120 days before your filing deadline, though you can still complete registration and file if you haven’t yet. After you file your tax return, the IRS sends a check. The agency estimate about 45 days from filing to payment.
Michigan’s Infrastructure Office runs an Elective Pay Ambassador Program with 10 regional experts across the state, providing free one-on-one support. For Wayne, Oakland, and Macomb counties, contact:
Mason Christerfield and Peggy Matta — Region 10 Ambassadors
masonch@2030districts.org; peggymatta@2030districts.org.
Visit michigan.gov/whitmer/issues/michigan-infrastructure-office/elective-pay for fact sheets, filing checklists, and deadline guides. You can sign up for email updates and find your regional ambassador contact there.
Ambassadors can also connect you with accounting assistance for filing.
Lord of Lords Church in Detroit is believed to be the first Michigan organization to receive an elective paycheck. Learn more in this video:
A Wayne County Solarized meeting is scheduled for April 28, and an Oakland County meeting takes place the following day. Check the Great Lakes Renewable Energy Association events page and the Planet Detroit events calendar for dates and details.
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Nina Misuraca Ignaczak is an award-winning Metro Detroit-based editor, journalist, and documentary filmmaker. She is the founder, publisher, and editor of Planet Detroit, a digital media startup focused on producing quality climate, health, and environment journalism that holds power accountable, and spotlights solutions. Planet Detroit has received awards and recognition from the Society for Professional Journalists Detroit, the Institute for Nonprofit News, and LION Publishers since its establishment in 2019. Prior to her journalism career, Nina worked in urban planning in local government and nonprofit sectors, holding a Master of Science in Natural Resource Ecology and a Bachelor of Science in Biology from the University of Michigan, Ann Arbor.
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This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.
by Nina Misuraca Ignaczak, Planet Detroit
April 28, 2026
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