**How the Latest Centered Regulations Help Drive Solar Projects for Communities**
If you’re following the clean energy sector, especially solar, you might have heard some news about the refinement of regulations tied to the Inflation Reduction Act (IRA). These regulations, finalized by the U.S. Department of the Treasury and the IRS, have created not only clarity but also flexibility, especially for tax-exempt and non-traditional entities that want to venture into clean energy projects. Although these regulations aren’t exclusive to solar energy, I want to break down how they directly impact solar, solar companies, and the growth of solar panels for your home.
### What Is Direct Pay and How Does It Relate to Solar Energy?
If you’ve explored solar energy taxes or incentives, you’re likely aware of tax credits. Traditionally, only entities with a tax liability could take full advantage of solar credits. That limited numerous organizations—especially non-profits, schools, state or local governments, and rural electric cooperatives—because they didn’t have the required tax liabilities. Here’s where *direct pay* comes in.
Direct pay is a significant game-changer under these newly finalized regulations. It allows these tax-exempt entities to receive clean energy tax credits, like the Investment Tax Credit
Original Article: https://pv-magazine-usa.com/2024/11/19/final-rules-on-direct-pay-expands-access-to-clean-energy-tax-credits/
