This is the first year that faith-based institutions and non-profits have been obtain a direct pay rebate from the federal government for the installation of a solar energy system. The number of applications will continue to increase as this market sector develops. The safe harbor tax rule allows a business to claim the tax credit this year (2023) by initiating the project before the end of year. The direct pay program was recently implemented by the passing of the Inflationary Reduction Act of 2022, and this is the first year in which it is enacted. For churches, non-profits, and government institutions wanting to learn more about how to apply and claim the direct pay rebate, please visit this website to learn more about the program: https://www.whitehouse.gov/cleanenergy/directpay/

The overall tax credits for businesses have also increased over previous years. For entities located in an Energy Community or Low-Income designated zone, a tax credit of 40% can be obtained. For those located in both zones, a 50% tax credit is available. Please visit this website to learn more about Energy Communities: www.energycommunities.gov and here to learn about solar tax credits for businesses: https://www.energy.gov/eere/solar/federal-solar-tax-credits-businesses

Please contact Morton Solar & Electric now for a site assessment to verify that your building and/or property is suitable for solar. (812) 402-0900