Overview
Elective Payment (commonly called Direct Pay) allows tax-exempt organizations and select taxable entities to receive federal clean energy tax credits as a cash refund from the IRS. This historic provision makes credits like the ITC and PTC accessible to schools, nonprofits, and local governments that do not have tax liability.

Eligible programs include:

• Section 48E ITC (clean electricity).
• Section 45Y PTC (clean electricity production).
• Section 48C Advanced Energy Project Credit.
• Section 45X Advanced Manufacturing Production Credit.
• Section 45Q Carbon Capture Credit.
• Section 30C Alternative Fuel Refueling Credit.

Who it applies to
Elective Pay is most impactful for school districts, local governments, cooperatives, tribal governments, and nonprofits. Certain taxable businesses also qualify depending on the program.

How CEH helps

• Manage the IRS Pre-Filing Registration process.
• Create documentation to support compliance and payment eligibility.
• Advise on timing and sequencing to align credits with project financing.
• Support organizations in navigating complex multi-program claims.

Why work with CEH
Elective Pay opens doors to clean energy investments that were previously out of reach. CEH helps ensure you secure direct cash payments efficiently and on time.