Expert filing and compliance guidance for Section 6417 direct pay elections, helping eligible entities claim the clean energy tax credits they've earned
The Inflation Reduction Act introduced Section 6417, allowing tax-exempt entities to receive direct payments from the IRS for clean energy tax credits, credits they previously couldn't use because they don't have federal tax liability.
GreenFile Advisory helps these organizations navigate the filing process, from initial registration to 990-T preparation, so they can access the incentives they're entitled to. We focus exclusively on the filing and compliance side, ensuring your direct pay election is handled accurately and on time.
Credits paid directly to your organization, no tax liability needed
Elections made on Form 990-T with proper schedules and registration
IRS Energy Credits Online portal registration required before claiming
The Investment Tax Credit starts at 30% of eligible project costs for qualifying projects. Bonus credits can stack on top of the baseline, and every one of them is payable in cash through a direct pay election.
Illustrative maximum. Actual rates depend on project size, prevailing wage and apprenticeship compliance, location, and program allocations.
Projects located in a qualifying energy community, such as areas tied to retired coal facilities or certain fossil fuel employment levels, can add ten percentage points to the credit. Eligibility is parcel-specific and verified by mapping.
Projects that meet US manufacturing thresholds for steel, iron, and manufactured components can add another ten percentage points. Thresholds step up by year, so documentation matters.
A capacity-limited allocation program for smaller projects located in low-income communities, on Tribal land, or serving qualified low-income residential or economic benefit projects. Applications run on annual cycles.
Under the 2025 tax law, solar and wind projects that began construction by July 4, 2026 keep the standard multi-year window to be placed in service. Projects starting construction after that date must be placed in service by December 31, 2027 to qualify. If your project is in motion, the filing calendar deserves attention now, not at tax time.
We guide you through IRS pre-filing registration on the IRS Energy Credits Online portal, ensuring your organization is properly set up before you file.
We prepare and file your Form 990-T with the required elections and schedules to claim your direct pay credits accurately and on time.
We help you maintain proper records, meet reporting deadlines, and stay compliant with IRS requirements for ongoing direct pay elections.
We review your organization's structure and clean energy investments to confirm Section 6417 eligibility and identify which credits apply to your situation.
We handle your pre-filing registration on the IRS Energy Credits Online portal, obtaining the required registration numbers for each eligible property.
We prepare your Form 990-T with proper elections and credit schedules, ensuring every line item is accurate and fully supported.
We file on your behalf and monitor for any IRS correspondence or follow-up needed, keeping you informed every step of the way.
Direct pay is not a grant application. Every eligible project that registers and files correctly receives payment. The sequence looks like this:
Your clean energy property (solar, storage, wind, etc.) is installed and operational. The placed-in-service date anchors the entire timeline.
Register each energy property on the IRS Energy Credits Online portal. The IRS issues a unique registration number needed for your return.
File Form 990-T with the direct pay election and attach the relevant credit form (Form 3468 for ITC). Must be a timely filed original return.
The IRS processes the return, treats the elected credit as an overpayment, and issues a refund by direct deposit or check.
Original educational content from GreenFile Advisory. Download these guides to understand the Investment Tax Credit, the direct pay filing process, and how bonus credits can increase your organization's return.
How the ITC works for tax-exempt organizations, which technologies qualify, eligible entity types, direct pay mechanics, bonus credits, funding interactions, and key deadlines.
Download PDFStep-by-step walkthrough of pre-filing registration, Form 990-T preparation, common pitfalls, a compliance checklist, and what to expect after filing.
Download PDFDetailed breakdown of Energy Community, Domestic Content, and Low-Income Communities bonus adders, how they stack, real-world scenarios, and documentation requirements.
Download PDFPre-filing registration portal for direct pay elections
Filing instructions for exempt organization business income tax return
Interactive mapping tool for Energy Community bonus eligibility
Capacity allocation program details and application guidance
Final regulations on elective pay, domestic content, and prevailing wage
Pre-filing registration procedures and requirements for direct pay
GreenFile Advisory handles the registration, preparation, and filing so your organization receives the credits it's earned.
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