The Overhead Wire Daily | January 23rd, 2024 | Direct Pay
January 23, 2024
One of the things about the Inflation Reduction Act that’s really interesting is that it allows direct pay for cities and other tax-exempt entities. What this means is that tax credits can be treated like refundable tax payments and large utility projects like solar funded by cities or publicly owned utilities can get up to a 40% rebate (direct payment) by the Federal Government (EPA summary here).
In the past it was a tax credit scheme that only for profit companies but now many agencies and cities could apply to reduce their energy consumption and carbon footprint. I haven’t seen a lot of instances of transit agencies using these new tools yet but it might be something beneficial down the road, especially in the move towards electrification of fleets or other potential energy needs. As we know, transit agencies are climate agencies now.
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If you’re in the Bay Area we’re hosting a happy hour with Urban Environmentalists Bay Area and Streets for People at Elixir on Thursday February 1st at 6pm. It’s easy access to BART at 16th/Mission and I hope folks can join us!
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