Michigan’s Elective Pay Program Boosts Clean Energy Tax Credit Access

Michigan's Elective Pay Ambassador Program aids nonprofits in accessing clean energy tax credits, benefiting communities.

Washtenaw 2030 District selected to Help Organizations bring Home Federal Funding for Clean Energy Projects

New Initiative Aims to Simplify Access to Federal Clean Energy Credits in Michigan

In an effort to streamline access to federal clean energy tax credits, the Michigan Infrastructure Office (MIO) has launched the Elective Pay Ambassador Program (EPAP) in partnership with local organizations such as the Washtenaw 2030 District. This initiative is designed to help various entities, including nonprofits and schools, secure substantial reimbursements for their clean energy investments.

The MIO Technical Assistance Center, collaborating with the Michigan Infrastructure Council and the Michigan Department of Environment, Great Lakes and Energy, announced that it will provide technical support to organizations looking to receive reimbursements of 30 percent or more for clean energy projects. “Michiganders from across the state have been selected as Elective Pay Ambassadors to help nonprofits, schools, local governments, Tribal Nations, houses of worship and other tax-exempt entities bring federal funding to Michigan’s communities,” stated the MIO.

Tasked with enacting Governor Whitmer’s infrastructure goals, the MIO ensures that resources from the Infrastructure Investment and Jobs Act are allocated efficiently. The Elective Pay Ambassador Program is a key component in this mission, facilitating easier access to federal funds for clean energy initiatives.

Kris Brady, director of MIO TAC, emphasized the program’s benefits: “By placing trained Ambassadors in trusted community organizations, we’re making it easier for eligible entities to understand the process, file for the tax credits, and receive the federal dollars they’ve earned. Elective Pay offers real, tangible financial benefits for schools, local governments, nonprofits, and houses of worship, entities that are often balancing tight budgets while delivering essential services to their communities. This support helps communities lower costs, upgrade infrastructure, and keep more resources focused on the people they serve.”

Following a competitive selection process, grants have been awarded to seven Michigan nonprofits that will host these Ambassadors. The Ambassadors’ mission is straightforward: assist community institutions in accessing federal clean energy tax credits through Elective Pay, which offers reimbursements covering up to 30 percent or more of project costs.

In Washtenaw County, Ambassadors Kim Heumann and Lissa Spitz have been appointed to serve the Prosperity Region, equipped with specialized training in Elective Pay. Their role is to act as local experts, guiding entities through the process of claiming these federal benefits.

The MIO also noted, “Despite the significant financial benefits of Elective Pay, awareness of this relatively new tool remains low, and many tax-exempt organizations face challenges navigating filing a tax return for the first time in order to claim the reimbursement. The Ambassador program was created to close this gap and make the process easier for local leaders who are improving their communities by investing in clean energy technologies such as solar, energy storage, geothermal, and more.”

The Washtenaw 2030 District, a collaborative focused on reducing greenhouse gas emissions by 50-65 percent by 2030, plays a critical role in this effort. The District works on enhancing Washtenaw County’s business competitiveness while promoting sustainable practices.

The EPAP, which will last for a year, provides stipends to hosting nonprofits. These organizations will conduct educational events and raise awareness about the available resources and services provided by MIO TAC, ensuring clean energy planning incorporates Elective Pay.

For further information on the Elective Pay Ambassador Program and to connect with an ambassador, visit Michigan Infrastructure Office’s website.

Photo: A solar farm. Image by Kev from Pixabay

Original Story at thesuntimesnews.com