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Direct Pay Tax Credits Provide Clean Energy, Jobs, Resilience & More for Communities
This World Resources Institute fact sheet describes the impact of the U.S. Inflation Reduction Act's (IRA) 'direct pay' (elective pay) provision, which allows tax-exempt entities to receive clean energy tax credits as cash payments. It highlights how local governments, nonprofits, and tribal nations use these funds to finance electric vehicles, solar arrays, and infrastructure, providing examples from cities such as Philadelphia, Chattanooga, and Pateros.
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Document type: Fact sheet
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