Elective Pay & Transferability (Clean Energy Credits)
Elective pay (direct pay) lets nonprofits, places of worship, schools, and local governments monetize §48E, §30C, and other IRA clean-energy credits as a cash refund. Transferability lets for-profit owners that lack tax appetite sell their credits.
Check an Address — Free Snapshot
See whether a specific Chicago address sits inside the area that unlocks Elective Pay & Transferability (Clean Energy Credits), alongside every other incentive that touches that parcel.
Tax-exempt entities (nonprofits, schools, churches, local governments, tribal governments) for elective pay. Any taxable owner of an eligible credit for transferability.
Elective Pay & Transferability (Clean Energy Credits) is administered at the federal level. Depending on the program, eligibility may depend on the specific location, property type, or business activity rather than a single drawn boundary.
Boundaries are precise and change over time, so exact eligibility always depends on the specific address. The fastest way to know is to run a free snapshot for the parcel you have in mind.
Typical range · Cash monetization of clean-energy credits
- +Direct cash refund for tax-exempt entities (elective pay)
- +Ability to sell credits to taxable buyers (transferability)
- +Applies to §48E (clean electricity ITC), §30C (EV charging), §45Y (clean electricity PTC), and others
- 1Pre-file registration through IRS Energy Credits Online (ECO) portal
- 2Place property in service
- 3File Form 990-T (tax-exempt) or Form 3800 with elective pay election
Pre-file at IRS Energy Credits Online before placing project in service
- ECO pre-filing registration number
- Form 990-T or Form 3800 with election
- Credit substantiation documentation
This page is a starting point, not eligibility, legal, or tax advice. Verify current requirements, deadlines, and boundaries with the administering agency before applying or spending money — program rules and funding change over time.
- IRS Energy Credits Online pre-filing — IRS
Mandatory — credit cannot be claimed without ECO registration number.
- Phone
- (800) 829-1040
- Web
- Visit site ↗
Last verified 2026-05-21
Created by the 2017 Tax Cuts and Jobs Act and made permanent by the One Big Beautiful Bill Act (OBBBA, Pub. L. 119-21, July 2025) on a 10-year designation cycle. OZ 2.0 governor nominations underway July 2026; new OZ 2.0 map effective 1/1/2027. Existing OZ 1.0 tracts remain valid through 12/31/2028.
WOTC LAPSE NOTICE: The Work Opportunity Tax Credit (WOTC) expired December 31, 2025. As of July 2026 it is in legislative hiatus — no new credits are available for employees starting work on or after January 1, 2026. WOTC has historically been reauthorized retroactively; employers are advised to CONTINUE pre-screening new hires using IRS Form 8850 to preserve potential retroactive eligibility. Credit value: $2,400–$9,600 per qualifying hire.
The New Markets Tax Credit program was made permanent by OBBBA (July 2025) with $5 billion in annual allocation authority — eliminating the prior reauthorization risk. The 39% federal tax credit on qualified equity investments through certified CDEs continues without sunset. CY 2026 application round not yet open as of July 2026. NMTC flows through Community Development Entities (CDEs), not directly to businesses — projects typically $5M+.
HUD-designated Qualified Census Tracts boost Low-Income Housing Tax Credits (LIHTC) by 30%, making affordable housing development more financially viable in these areas.