Cities and local governments are on the front lines responding to climate change, but high costs have slowed the progress of some sustainable energy projects. To address this challenge, federal tax credits that offer elective pay, commonly known as direct pay, can be a valuable tool to help communities finance climate change mitigation and resilience projects that were previously too expensive. Here’s what you need to know about Direct Pay for local governments.
Direct Pay Tax Credits
The Inflation Reduction Act, passed on August 16, 2022, permits non-taxable entities like local governments to receive direct payments from the federal government, equivalent to the value of certain credits. This policy shift provides new avenues for local governments to access financial resources needed to advance their sustainability initiatives.
Direct Pay allows tax-exempt and municipal governmental entities to receive a payment equal to the full value of tax credits for qualifying clean energy projects. Local governments will get their credits as long as they meet the requirements.
Why Cities Should Apply for Direct Pay
As the EV market continues to expand, consumer expectations for convenient and reliable chargers are rising rapidly. Adding EV charging stations in your city not only meets EV drivers’ growing demand for refueling, but also attracts more people to your city and supports sustainable transportation practices.
Direct Pay is a powerful tool for local governments to expedite their investments in clean energy. Through the strategic deployment of clean energy solutions within local communities, these initiatives not only advance environmental justice but also deliver tangible benefits, including cost savings for residents, substantial reductions in harmful pollution, and notable enhancements to public health.
Obtaining direct pay is a simple and structured process. Begin by identifying the project and the desired credit you wish to pursue. Once the project is completed and in operation, note the relevant tax year. Then, complete the IRS pre-filing registration before the relevant due date for your tax return. Once you receive your registration number, you can promptly file your tax return, including any extensions, and expect to receive your direct payment promptly.
Blink’s Municipal EV Charging Solutions
Blink proudly partners with local governments to provide EV charging in communities across America. Working closely with cities and municipalities, we ensure they have the right chargers and EV infrastructure for their sustainability initiatives. Our goal is to support the widespread adoption of EVs and make EV ownership more accessible.
Blink’s Series 8 EV charging stations are perfect for municipal clients, offering maximum flexibility and control. They work with all plug-in electric vehicles. Billing options are customizable, including time-based, kWh-based, session-based, or even complimentary. Payment is easy for drivers using the Blink Mobile App, RFID, Apple Pay, Google Wallet, and major credit cards. The Blink Network allows centralized management of community EV charging stations, providing full control and monitoring. Users receive text and email notifications about charging station status, ensuring a seamless experience for EV drivers.
Municipalities and public institutions around the nation are turning to Blink to provide EV charging stations and contribute to a cleaner, greener local community. We want to work with you to create a more sustainable community for your residents and visitors. Get started here to see how Blink can help you choose the right EV charging equipment for your city.