Pathways for Nonprofits

Many of the small business pathways apply to nonprofit organizations. Any of Focus on Energy’s commercial rebates, for example, would be applicable to nonprofits. However, because of the tax-exempt nature of nonprofits, there are some important distinctions. The tax credit for geothermal heating, for example, is handled differently. “Direct Pay” (also known as “Elective Pay”) provides nonprofits access to these tax credits.

There are also some opportunities that only exist for nonprofits, like Renew Wisconsin’s Solar for Good grant.

This is a photograph of the ground mounted solar PV array at the Bubolz Nature Center in Wisconsin.

Things to know

Direct Pay is like a grant you know that you’ll get

Historically, tax credits were of no use to organizations like nonprofits, cities, churches, and other organizations that don’t pay taxes. Direct Pay, sometimes called Elective Pay, changes that. Now, you can access that tax credit in the form of a check. Many of the tax credits that otherwise would only be available to for profit entities in the Inflation Reduction Act are eligible. These are noted below:

Name	Category	Technologies	Incentive Type	Source	Administrator	Incentive Description	Eligibility	Application Process	Renter Applicable?	Direct/Elective Pay Eligible	Status
Alternative Fuel Vehicle Refueling Property Credit, Business/Nonprofit (30C)	Commercial, Nonprofit	Electric Vehicle Chargers	Tax Credit	Federal	IRS	The Alternative Fuel Vehicle Refueling Property Credit provides up to 30% of the cost of installing Level-2 or Direct Current Fast Chargers for electric vehicles. The incentive is capped at $100,000. With Direct Pay, this tax credit can be directly monetized by nonprofits and other tax-exempt organizations. Go to https://www.irs.gov/credits-deductions/alternative-fuel-vehicle-refueling-property-credit for additional information, specifics, and limitations.	Please Note: On July 4th, the Trump Administration passed the “Big Beautiful Bill” which eliminated this tax credit for projects placed in service after June 30, 2026. All businesses and tax-exempt organizations are eligible.	To claim the credit, go to https://www.irs.gov/credits-deductions/alternative-fuel-vehicle-refueling-property-credit and file the appropriate forms with the IRS. The credit may also be transferred to an appropriate party, consult the IRS for more information.	N/A	Yes*	Repealed
Investment Tax Credit (ITC) for Energy Property	Commercial, Nonprofit	Renewable Energy, Solar PV	Tax Credit	Federal	IRS	The ITC provides a tax credit for investment in renewable energy sources, including solar, geothermal, wind, and others. For solar, it includes (1) equipment that uses solar energy to generate electricity, to heat or cool (or provide hot water for use in) a structure, or to provide solar process heat, and (2) equipment that uses solar energy to illuminate the inside of a structure using fiber-optic distributed sunlight or electrochromic glass that uses electricity to change its light transmittance properties in order to heat or cool a structure. The tax credit is for 6% of the cost of the investment. However, it multiplies by five if the project meets prevailing wage and apprenticeship requirements. If the project meets standards for domestic content and is located in an area defined as an ‘energy community,’ the credit can be as high as 50%.	This is for projects breaking ground after 1/1/2025. Since the passage of H.R. 1 in July 2025, this credit has become complicated for solar and wind projects. If you are considering using the ITC, contact EnergyConnector@greenbaywi.gov for resources. Your project will need to begin construction prior to July 4, 2026 in order to be eligible and prior to 12/31/2025 to be free of foreign entity of concern (FEOC) restrictions.	Fill out IRS form 3468.	N/A	Yes*	Threatened

Name

Category

Technologies

Incentive Type

Source

Administrator

Incentive Description

Eligibility

Application Process

Renter Applicable?

Direct/Elective Pay Eligible

Status

Alternative Fuel Vehicle Refueling Property Credit, Business/Nonprofit (30C)

Commercial, Nonprofit

Electric Vehicle Chargers

Tax Credit

Federal

IRS

The Alternative Fuel Vehicle Refueling Property Credit provides up to 30% of the cost of installing Level-2 or Direct Current Fast Chargers for electric vehicles. The incentive is capped at $100,000. With Direct Pay, this tax credit can be directly monetized by nonprofits and other tax-exempt organizations. Go to https://www.irs.gov/credits-deductions/alternative-fuel-vehicle-refueling-property-credit for additional information, specifics, and limitations.

Please Note: On July 4th, the Trump Administration passed the “Big Beautiful Bill” which eliminated this tax credit for projects placed in service after June 30, 2026.

All businesses and tax-exempt organizations are eligible.

To claim the credit, go to https://www.irs.gov/credits-deductions/alternative-fuel-vehicle-refueling-property-credit and file the appropriate forms with the IRS. The credit may also be transferred to an appropriate party, consult the IRS for more information.

N/A

Yes*

Repealed

Investment Tax Credit (ITC) for Energy Property

Commercial, Nonprofit

Renewable Energy, Solar PV

Tax Credit

Federal

IRS

The ITC provides a tax credit for investment in renewable energy sources, including solar, geothermal, wind, and others. For solar, it includes (1) equipment that uses solar energy to generate electricity, to heat or cool (or provide hot water for use in) a structure, or to provide solar process heat, and (2) equipment that uses solar energy to illuminate the inside of a structure using fiber-optic distributed sunlight or electrochromic glass that uses electricity to change its light transmittance properties in order to heat or cool a structure.

The tax credit is for 6% of the cost of the investment. However, it multiplies by five if the project meets prevailing wage and apprenticeship requirements. If the project meets standards for domestic content and is located in an area defined as an ‘energy community,’ the credit can be as high as 50%.

This is for projects breaking ground after 1/1/2025.

Since the passage of H.R. 1 in July 2025, this credit has become complicated for solar and wind projects. If you are considering using the ITC, contact EnergyConnector@greenbaywi.gov for resources. Your project will need to begin construction prior to July 4, 2026 in order to be eligible and prior to 12/31/2025 to be free of foreign entity of concern (FEOC) restrictions.

Fill out IRS form 3468.

N/A

Yes*

Threatened

(Please note that the direct pay check will come after taxes are filed the following year.

The White House no longer publishes information on Direct Pay, however information is archived here: https://bidenwhitehouse.archives.gov/cleanenergy/directpay/
The IRS page on Direct Pay (also called “Elective Pay”) and the Inflation Reduction Act is available here: https://www.irs.gov/credits-deductions/elective-pay-and-transferability
Lawyers for Good Government offers resources and some technical assistance here: https://cleanenergytaxnavigator.org/.

Get at least 30% back for solar PV in the form of a tax credit!

(Please note: On July 4th, H.R. 1 (OBBBA) attached new restrictions to this tax credit for solar and wind projects and shortened the timeline. Check with the IRS for guidance. Tax credits for geothermal projects continue.)

The Investment Tax Credit (ITC) provides a tax credit for investment in renewable energy sources, including solar, geothermal, wind, and others. For tax exempt organizations, you would use direct pay (see above) to access the credit.

The tax credit is for 6% of the cost of the investment. However, it goes up to 30% if the project meets prevailing wage and apprenticeship requirements. There may be additional “adders” if requirements related to environmental justice are met

Generally, solar and wind projects under 1.5 MW will need to have begun construction prior to July 4th, 2026 or be finished by December 31, 2026.

Please note:

We would also recommend working with a tax attorney to fully understand how to be compliant.
For projects that begin construction after January 1st, 2026, there are restrictions that involve foreign entities of concern (FEOC). This can relate to the components within pieces of equipment, or components of systems. We are still awaiting more guidance from the IRS on what these mean.
On August 15th, the IRS released a guidance that added additional detail about how to determine “beginning of construction,” and how to interpret the continuity of construction safe harbor. Here is that notice.

Focus on Energy has Increased its Solar Rebate for 2026

Wisconsin’s Focus on Energy is stepping up its solar energy rebates. Starting January 1, 2026, Focus’s rebate for non-residential solar PV is increasing to $600 per kW up to $2,400, and then $50 per kW afterwards, up to a total of $25,000! So, for example, if you were to install an 180 kW system, you would receive a rebate of $11,200! That’s enough to make a big difference!

Consider a geothermal heating and cooling system

The OBBBA’s changes to the ITC tax credit did not extend to geothermal systems.

The tax credit is for 6% of the cost of the investment. However, it goes up to 50% if the project meets prevailing wage and apprenticeship requirements. There may be additional “adders.”

Yes, there is at least one grant!

There are foundations and other grant-giving organizations that would love to help your nonprofit on the path towards clean energy and electrification. As we discover more, we will list them here:

Solar for Good: Renew Wisconsin and the Couillard Solar Foundation maintain the “Solar for Good” grant, which helps worthy nonprofits install solar PV. The next grant cycle opens September 1, 2025. There is more information available here: https://www.renewwisconsin.org/solarforgood/.

Updated:2/12/2026