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Direct Pay 2024: Digging into the Details

This webinar originally aired on Thursday, February 22nd, 2024


The Inflation Reduction Act introduced a provision in 2023 called Elective Pay (more commonly known as “Direct Pay”) that creates a very exciting pathway for nonprofit organizations to utilize tax credits.

In this session, we review aspects of Direct Pay, how to apply, and any updates to be aware of as we move into the 2024 tax year. This information will be helpful for nonprofits who have placed a system in service during the 2023 tax year or are planning to place a system in service in the 2024 tax year. We also discuss timing of filings, as well as a review of the 990-T and other forms that need to be completed.

Key Highlights:

  • Determine how your tax year affects Direct Pay eligibility
  • Understand the filing timeline and order of operations for registration and tax filings including forms such as the 990-T/3800/3468 that need to be completed
  • 6/30 vs 12/31 year-end filers discussion on the Direct Pay timelines
  • Join our interactive Q&A: Have your questions answered by experts during our question-and-answer session at the end of the webinar

Presentation Resources:

Slide Deck: Direct Pay 2024: Digging into the Details Webinar

Q&A Transcript: Direct Pay 2024: Digging into the Details Webinar Q&A

CollectiveSun Product One Pagers: https://collectivesun.com/collectivesun-empowering-nonprofits-nationwide-with-tailored-solar-financing-solutions/

Additional Recommended Resources:

Direct Pay Summary: https://www.whitehouse.gov/cleanenergy/directpay

Proposed Regulations: https://federalregister.gov/d/2023-12798

Pre-filing Registration Portal: https://www.irs.gov/credits-deductions/register-for-elective-payment-or-transfer-of-credits

The forms:

3468 – https://www.irs.gov/forms-pubs/about-form-3468

3800 – https://www.irs.gov/forms-pubs/about-form-3800

990T – https://www.irs.gov/forms-pubs/about-form-990-t


In case you missed CollectiveSun’s three-part ITC Bonus Adders Series, and the original Direct Pay Webinar, you can find the recordings, presentation decks, Q&As and more with these links below:

Previous Webinar: Domestic Content Bonus Adder – What You need to Know

Previous Webinar: Low-Income Communities Bonus Adder – What You Need to Know

Previous Webinar: Energy Community Bonus Adder – What You Need to Know

Original 7/20/23 Direct Pay Webinar: Webinar: Direct Pay – What You Need to Know


If you have any questions, please feel free to reach out to us at Contact Us – Let’s Connect!