Friday, May 15, marks a meaningful deadline for energy projects using the U.S. Internal Revenue Service’s (IRS’s) elective pay provision. It’s the last day to file Form 990-T for calendar-year tax-exempt entities, which is the return on which they would claim elective pay for projects placed in service in 2025.
Elective pay, or direct pay, is used by entities like municipalities and schools to mon...
The strongest version of this narrative highlights the practical challenges and trade-offs of elective pay under the IRA. It acknowledges the tool’s value for tax-exempt entities while candidly addressing its inefficiencies—delays, paperwork, and stranded depreciation benefits. The analysis also contextualizes market dynamics, noting how corporate tax cuts temporarily disrupted demand for tax credits, a detail often overlooked in broader policy discussions.
Patterns detected: none
The root cause...