Traditionally, only tax-paying entities, such as companies and private individuals, have been able to take advantage of tax credits. That excludes a wide range of tax-exempt organizations, such as local governments, rural co-ops, municipal utilities, Native American tribes, churches, and school districts from accessing credits intended to reduce energy and transportation costs. The “direct pay” policy, which is restricted just to these organizations, allows them to convert a credit into a cash payment from the U.S. Treasury – unlocking those cost savings and encouraging smart, energy-efficient investments. As over 100 mayors and local officials from across the country stated, without access to these credits, energy costs for families could rise, almost 100,000 jobs would be lost, and U.S. economic growth would slow.
St. Andrews Episcopal Church
- Status: Operational
- Location: Lewisburg, PA (Union County)
- Congressional District: Pennsylvania 15th
- Technology: Solar
- Relevant Tax Provision:
- Investment Tax Credit (ITC)
- Direct Pay
- Fast Facts:
- Across the Keystone State, there are more than 2,300 megawatts of solar installed today, enough to power over 305,000 homes.
- Over the past decade, the price of solar has declined approximately 37% for Pennsylvania consumers.
- Pennsylvania is home to almost 500 solar companies, like those involved in this project, employing nearly 4,300 people.
Geothermal Conversion at Margaret Mary Cancer Center
- Status: In Development
- Location: Batesville, IN
- Congressional District: Indiana 9th
- Technology: Geothermal Energy
- Relevant Tax Provisions:
- Direct Pay
- Fast Facts:
- The Margaret Mary Health Cancer Center’s new state-of-the-art 126,000 square foot facility, currently under construction, will utilize geothermal energy for its HVAC system.
- The project saved up to $300,000, and the hospital will see a 6-year return on investment using clean, firm geothermal energy.
HOLA Elementary Rooftop Solar
- Status: In Development
- Location: Palmetto, FL (Manatee, FL)
- Congressional District: Florida 16th
- Technology(s): Rooftop Solar
- Relevant Tax Provision(s):
- Domestic Content Adder
- Direct Pay
- Fast Facts:
- In collaboration with Renaissance Arts and Education, Tampa Bay Solar and Regenerative, Shift will install 2 megawatts of rooftop solar at HOLA Elementary.
- Direct Pay has enabled HOLA to take advantage of this new tax incentive, creating a cost-effective solution to providing reliable energy. Installations are scheduled to be completed in the summer of 2025.
Porterville Unified School District’s Advanced Energy Investments
- Status: Operational
- Location: Porterville, CA
- Congressional District: California 22nd
- Technologies: Rooftop solar, battery storage, EV charging
- Relevant Tax Provisions: Direct Pay
- Fast Facts:
- Porterville Unified School District used the Direct Pay provision to install solar, storage, and EV chargers on its facilities.
- Porterville was able to save $2 million by taking advantage of its Direct Pay eligibility and expects to save up to $3 million over the next ten years.
- The installation process has opened up opportunities for students to learn more about energy efficiency and building electrification, teaching them valuable skills in the electrification space.
Holy Cross Rural Solar and Storage
- Status: Operational and expanding
- Location: Glenwood Springs, CO
- Congressional District: Colorado 3rd
- Technologies: Rooftop solar, battery storage
- Relevant Tax Provisions: Direct Pay
- Fast Facts:
- Holy Cross Energy, a rural electric cooperative in Glenwood Springs, CO has used Direct Pay to invest in solar, wind, and battery storage systems.
- As of 2025, Holy Cross Energy’s Power+ program has financed over 800 domestically made battery packs across 200 homes, with an additional 100 projects set for completion by the end of the year.
- Because of Direct Pay, Holy Cross could make these investments which have saved them up to 50% in total costs in many cases.
Washoe County School Electrification
- Status: Operational and expanding
- Location: Washoe County, NV
- Congressional District: Nevada 2nd
- Technology: Rooftop solar, EV charging, and heat pumps
- Relevant Tax Provision: Direct Pay
- Fast Facts:
- Washoe County School District has undertaken multiple projects to install EV charging, ground source heat pumps, and solar for its newly built and renovated
- These investments, enabled by Direct Pay, will make the schools more energy-efficient, saving them money over the long-term, and allowing them to enhance the safety and security of their learning environments.
Lakeland Central School District Energy Upgrades
- Status: In Development
- Location: Shrub Oak, NY
- Congressional District: New York 17th
- Technology(s): Solar, energy efficiency
- Relevant Tax Provisions: Direct Pay
- Fast Facts:
- Lakeland Central School District is upgrading its buildings to become more energy efficient across eight schools.
- Lakeland has begun to install solar panels and energy efficient HVAC systems using Direct Pay, which will reduce energy costs to the district over the long-term and provide an enhanced learning experience for students.