In my previous blog (published August 2023), What Local Decision Makers Should Know about IRA Tax Credits for Electric Vehicles, I outlined how local governments and other tax-exempt entities can now access Clean Energy Tax Credits using Direct Pay (aka Elective Pay). The new and revised tax credits, which are part of the Inflation Reduction Act (IRA), include several to support EVs (electric vehicles) and EV charging infrastructure investments.
One important distinction is that the infrastructure tax credit is only accessible in census tracts that meet the federal designation of “low-income” or “non-urban.” As I explained in my previous post, “To qualify, a property must be within non-urban census tracts or low-income communities (the poverty rate is at least 20 percent, or the median family income does not exceed 80 percent of statewide median family income).”
Since that blog was published, the federal government has issued updates to clarify how to take advantage of the tax credits and, most importantly, understand which census tracts qualify for the charging infrastructure credits.
New Forms To Pre-Register For Using Tax Credits
In December 2023, the Treasury Department released the new Pre-Filing Registration Tool for accessing Direct Pay tax credits. This is the registration and documentation that eligible non-tax paying entities such as state, local, and tribal governments, rural energy coops, and other eligible nonprofits, will need to do prior to using tax credits for EVs or EV charging infrastructure.
New Rule Makes Charging Infrastructure More Widely Accessible
The IRA created an EV charging infrastructure tax credit that covers upwards of 30% of infrastructure costs up to $100,000 per charging station. Initially, there was confusion about the Section 30C tax credit (Charging Infrastructure Credit) because it defined qualifying census tracts as either low-income or “non-urban.” However, the U.S. Census Bureau only identifies census blocks rather than tracts as “non-urban.” On January 19, 2024, the Treasury Department issued guidance that clarifies which census tract/blocks qualify for the credit. The new definitions give broad eligibility to low-income and non-urban areas meaning about ⅔ of the U.S. population now qualify for the credits.
New Map Helps Visualize what Census Tracts Qualify
The Department of Energy (DOE) then followed up with the 30C Tax Credit Eligibility Locator, a mapping tool that allows users to see what tracts qualify. The mapping tool will allow both tax-paying entities, such as consumers and businesses, and eligible non-tax paying entities to identify where in their communities charging infrastructure can be cited to qualify for the EV charging infrastructure tax credits.
Upcoming Office Hours for Elective Pay Applicants
The Internal Revenue Service (IRS) is hosting upcoming office hours that are available for all Direct (Elective) Pay applicable entities. This is to assist with the IRS Energy Credits Online pre-filing registration process. Upcoming office hours and links to register are below:
January 26, 2024 1-2 PM EST Register Here
January 30, 2024 1-2 PM EST Register Here
February 2, 2024 1-2 PM EST Register Here
February 6, 2024 1-2 PM EST Register Here
February 9, 2024 1-2 PM EST Register Here
To receive any future announcements on IRS office hours and for updates on Direct Pay generally, sign up at IRS.gov/newsroom/e-news-subscriptions by scrolling down to the “Tax exempt & government entities” category.
Resources from IRS
Additionally, the IRS has detailed resources to help users navigate the pre-filing registration process from start to finish, including this how-to video and this comprehensive user guide.
The IRS website on Direct Pay has a series of educational one-pagers for each direct pay applicable entity, a list of applicable tax credits, and an extensive list of FAQs.
Doing More in 2024
The additional IRS Direct Pay guidance, resources, and assistance will make applying for and using the EV charging infrastructure tax credit easier. The tax credit is designed to support the growth of publicly available chargers in low-income communities and non-urban areas, making it more affordable to install EV charging infrastructure and increasing access to EV charging in underserved communities.
The Southern Alliance for Clean Energy’s Electrify the South program leverages research, advocacy, and outreach to accelerate the equitable transition to electric transportation across the Southeast. Visit ElectrifytheSouth.org to learn more and connect with us.
The post Clean Energy Tax Credits Clarified with New Rules and Tools appeared first on SACE | Southern Alliance for Clean Energy.
Weather Guard Lightning Tech
CIP Offshore in Taiwan, RWE Buys GE Vernova for Texas
CIP achieves financial closure for an offshore wind project in Taiwan and the UK may shift towards a domestic offshore wind supply chain. GE Vernova plans to equip two RWE farms in Texas, and Masdar will potentially acquire TotalEnergies’ renewable assets in Portugal. Register for the start of our webinar series with SkySpecs!
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Allen Hall: Starting off the week, Copenhagen Infrastructure Partners has secured financial close on the 495 megawatt Fengmiao offshore wind project off Taiwan’s Coast. This Marks CIP’s third offshore wind project in Taiwan and is the first of Taiwan’s round three projects to start construction.
The project secured approximately $3.1 billion in financing from 27 banks with debt partially guaranteed by export credit agencies. Now Vestas will supply 33 of its latest 15 megawatt turbines for the projects and construction will finish by late 2027 with six corporate customers already signed for long-term power purchase agreements covering its entire capacity. Dan McGrail Interim, CEO of Britain’s new state owned GB Energy believes the UK should challenge oversee renewable energy companies by exporting its expertise globally. McGrail sees floating offshore wind as a huge opportunity for British technology leveraging existing supply chains from the oil and gas industry.
He aims to shift focus from importing parts to building them domestically, which could create an export industry over time. GE Vernova will equip two RWE farms in Texas with over 100 turbines with deliveries beginning later this year. The projects will help RWE surpass one gigawatt of rebuilt and repowered wind capacity across the US and generate enough electricity to power approximately 85,000 Texas homes and businesses annually. Boosting US content. Then the sales for the project will be manufactured at GE Vernova’s Florida facility, which employs about 20% Veterans.
RWE’s Chief Operating Officer emphasized their commitment to American energy production and strengthening domestic manufacturing and supply chains. GE Vernova’s Entre Wind Division currently has a total installed base of 56,000 turbines worldwide with nearly 120 gigawatts of installed capacity.
Abu Dhabi’s Masdar is considering acquiring a stake and total energy’s Portuguese renewable energy assets. The deal will likely be through SATA yield. The Green Energy Company masar purchased from Brookfield last year. This would add to MAs dollar’s growing European portfolio, which includes recent acquisitions in Spain and Greece as the company works towards its global target of 100 gigawatts by 2030.
Total Energy is currently has about 600 megawatts of installed renewable capacity in Portugal, mostly higher valued wind power assets. Total energy. CEO previously mentioned plans to divest around two gigawatts annually as part of portfolio consolidation. And that wraps up our wind industry headlines from Monday, March 24th. The conversation continues tomorrow on the Uptime Wind Energy Podcast, where we’ll explore even more insights shaping the future of renewable energy.
And don’t forget to join our exclusive live webinar this Wednesday featuring Sky Specs New CEO Dave Roberts. He’ll be sharing his roadmap for the company’s exciting future. All access details are awaiting for you in the show notes.
https://weatherguardwind.com/cip-taiwan-rwe-ge-vernova/
Almost all Americans respect and admire Canada and the kind, intelligent, and respectful people who make their homes there. Accordingly, we are appalled at our country’s decision to attack one of our oldest and finest friends.
In addition, as shown at left, there is a certain fraction of us who are losing our livelihoods due to our president’s rash insanity. We all need to feel a particular sympathy for them.
Answer to the question posed at left:
A plurality of American voters elected a man with terrible values, and now our nation is realizing that the toothpaste can’t go back into the tube.
Worse, while the president’s power is theoretically limited by the Constitution, those limits are vague and extremely difficult to enforce by Congress and the Judiciary.
The Founding Fathers clearly never dreamed that the electorate would choose a criminal sociopath as the country’s (and world’s) most powerful person.
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