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Direct Pay, Explained by Someone Who Files It

Most writing about Section 6417 is aimed at tax lawyers. These are written for the finance director, business manager, or board treasurer who has to get the filing done. Every claim traces back to an IRS or Treasury source.

PERSPECTIVE · 8 min read

Hawaii Nonprofits Can Get the Solar Credit Paid in Cash

Hawaii's state solar credit was never available to a 501(c)(3). The federal credit is, in cash, but only if your organization owns the system.

DEADLINE · 8 min read

The 2025 Form 990-T Direct Pay Deadline Is November 16

Extended your 2025 Form 990-T? The direct pay election is due Monday, November 16, 2026. Pre-filing registration has to clear first and cannot be expedited.

GUIDE · 6 min read

Direct Pay and PPAs: Why Ownership Decides the Credit

Under a PPA the developer owns the system and claims the credit, not the nonprofit. What to check before signing, and the structures that keep it yours.

EXPLAINER · 6 min read

Do Foreign Entity Rules Apply to Geothermal Heat Pumps?

No. A Section 48 geothermal heat pump has no cost ratio, no supplier certifications, and no six year assessment period. What a nonprofit owner still files.

ELIGIBILITY · 7 min read

Geothermal Heat Pumps: Section 48 Runs to 2035

Solar and wind were cut back. Geothermal heat pump property stays under Section 48 for construction beginning before January 1, 2035. How to claim it in cash.

EXPLAINER · 6 min read

How the IRS Pays a Nonprofit Back for Solar

A plain-English walkthrough of Section 6417: who qualifies, the filing sequence from registration through payment, and how grant funding interacts with the credit.

UPDATE · 7 min read

Material Assistance and the Foreign Entity Rules

Projects beginning construction after 2025 must clear a material assistance cost ratio. IRS interim guidance adds safe harbors, and the penalty falls on the owner.

UPDATE · 7 min read

OBBBA: What the 2025 Tax Law Changed for Nonprofits

A December 31, 2027 placed-in-service deadline for late starters, higher domestic content thresholds, and new foreign sourcing rules. What reaches your project.

EXPLAINER · 6 min read

Section 48 vs 48E: Which Credit Your Project Claims

Construction start and placed-in-service date decide it, not the technology. Where the line falls, and which projects still sit under the older Section 48.

EXPLAINER · 7 min read

Energy Property Under Section 48: What Is in Your Basis

The unit of energy property, integral parts, the 80/20 retrofit rule, and dual use property. What each one adds to or takes out of eligible basis.

GUIDE · 7 min read

Who Keeps Prevailing Wage Records on a Nonprofit Job

Final prevailing wage and apprenticeship rules put the recordkeeping burden on the owner, even for workers the owner never employed. What a nonprofit has to collect.

UPDATE · 6 min read

Direct Pay Final Rules: Ownership Decides the Credit

Treasury finalized the Section 6417 elective pay regulations. The ownership rule, the no-amended-return rule, and the 20% excessive payment addition, in plain terms.

GUIDE · 6 min read

IRS Pre-Filing Registration: What You Need and When

Registration is required before the election and cannot be expedited. What to have ready, when you are allowed to start, and when to contact the IRS.

GUIDE · 6 min read

Apply for the Low-Income Bonus Before You Energize

The low-income bonus adds 10 or 20 percentage points, but the allocation has to arrive before the system is placed in service. There is no cure for that order.

EXPLAINER · 6 min read

Domestic Content Bonus: The Two Tests and the Thresholds

One test on steel and iron, one on manufactured product cost, now 45% to 55% by construction start year. Why the cost test is hard for an owner to prove.

EXPLAINER · 6 min read

Does Our Solar Project Sit in an Energy Community?

The energy community bonus adds up to 10 percentage points to a solar or geothermal credit. How the three categories work and what a nonprofit owner has to keep.

Have a project and a deadline?

We handle eligibility confirmation, IRS pre-filing registration, and the Form 990-T election. Filing and compliance only, so we are not competing with your installer or your financing.

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