Elective Pay (Direct Pay) for Clean Energy Tax Credits — Internal Revenue Service

Lets tax-exempt farms, co-ops, tribes, and municipalities receive the value of clean energy tax credits (solar, storage, EV charging, biogas) as a cash payment instead of a tax offset. Pairs well with REAP grants.

Typical award: 30%+ of eligible project cost paid as cash refund
Deadline: Rolling — pre-file registration, then claim on annual return
Type of support: Funding / grants · Climate & energy
Who can apply: Non-profit, Tribal
Fits these operations: Vegetables & produce, Cut flowers, Orchard & fruit, Mixed / diversified, Value-added & food business, Urban farm

Am I eligible?

Tax-exempt entity, tribal government, co-op, or public entity
Owns a qualifying clean energy asset placed in service that tax year
Pre-filing registration completed before the return is filed

How to apply

1Confirm the equipment qualifies (solar PV, storage, biogas, EV charging)
2Complete IRS pre-filing registration and get a registration number
3File the annual return with Form 3800 and the credit forms
4Receive the payment after processing

What you'll need

Placed-in-service date and invoices for the energy system
IRS pre-filing registration number
Entity EIN and exemption documentation

Timeline & contact

Registration weeks; payment follows the tax filing cycle

Get help: IRS elective pay help page; a farm-savvy CPA is worth the fee here

Ready to apply?

Applications go through Internal Revenue Service, not through this site. Open the official page below for eligibility rules, forms, and contacts. For federal programs it's worth calling your local USDA Service Center or Cooperative Extension office first — they help with paperwork for free and know what your county actually funds.

Open official page

This listing was last hand-checked August 2026.

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