Key takeaways from the article
- Early discussion with a tax consultant: It is advisable to discuss and review an IRA project with a tax consultant as early as possible.
- Understanding the IRA direct pay tax credit: The concept of the IRA direct pay tax credit is straightforward. It involves multiplying an eligible cost by an applicable IRA tax credit percentage.
- Project specifics matter: Factors such as project size (over/under one megawatt), construction start date, and construction bidding/timing significantly impact the final direct payment received.
- Follow key IRA tax concepts: Starting a project without adhering to IRA tax concepts may lead to a reduction in the tax credit percentage.
- Include IRA in school district planning: If your school district is evaluating equipment and facility needs, consider including IRA as part of the planning process.
For more information, or to learn more about how Baker Tilly advisors can help your institution, connect with our team.
