Inflation Reduction Act and non-profit
I volunteer with a local non-profit in Kansas, and I want to provide them with information about potential incentives for energy efficiency upgrades to their buildings and appliances. My problem is that I’m not an accountant and have difficulty understanding the provisions in the IRA as they apply to non-profits. Some websites seem to indicate that non-profits can now utilize the 30% credit for solar PV installations, but others make it look like any incentives are tied to large solar projects instead of rooftop. I also can’t find anything about heat pumps, making me think that the residential tax credits are not the same as the non-profit. This is an organization with a number of buildings with aging HVAC and home appliances.
I am hoping someone can give me plain speech about whether and how the IRA can benefit non-profits in the absence of new building projects. Are there new incentives for residential-scale solar for non-profits? For heat pumps? For insulation and other weatherizing interventions?
Thanks in advance. I use this forum regularly, and the GBA site in general has been a valuable resource that I have referred others to on numerous occasions. Hoping this is more than just a shot in the dark.
Daniel
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Replies
My understanding is that the solar tax credit at least is transferable -- if you aren't an entity that pays taxes, you can sell it someone who is. At least that's how I understand the "leasing" of panels works.
You might try talking to a solar installer, the various subsidies are a big part of their sales pitch and they're generally well-versed in them. And then you're going to need to talk to your accountant and verify what they say.