Don't Leave Money on the Table: How SoCalREN Can Help Public Agencies Secure Incentives for Solar, Batteries, Electric Vehicles, and Other Clean Energy Infrastructure
Don’t miss out on valuable incentives or get lost in the red tape.
Public agencies can take advantage of federal clean energy tax credits, even without a federal income tax liability, through the IRS’s Direct Pay provision. SoCalREN is here to help your agency navigate this opportunity and reduce your project costs with confidence.
Whether your agency is investing in solar panels, battery storage, electric vehicles, or EV charging infrastructure, SoCalREN’s guidance can ensure you don’t miss out and leave valuable funding on the table.
How Direct Pay Works
Direct Pay allows tax-exempt and public entities to receive cash payments equal to the clean energy tax credits that private companies claim. SoCalREN simplifies this process with:
- A Pre-Registration Checklist
Clear, step-by-step guidance to help your agency complete the IRS pre-registration, including key document prep, timeline planning, and helpful links to resources. - Credit-Specific Educational Materials
Access to annotated tax forms, tools, and recorded webinars to support your agency at each step of the process. - Access to Tax Experts
Connect with experienced tax professionals through SoCalREN’s Trade Ally Network and get help with eligibility questions, troubleshooting, and maximizing your agency’s credit amount.
After your agency purchases eligible equipment, simply complete the brief pre-registration application through the IRS portal, gather basic documentation, and submit your claim by your fiscal-year tax filing deadline. With SoCalREN’s step-by-step support from start to finish, the process is clear and reliable - so nothing falls through the cracks. Your agency can stay on track and receive Direct Pay funds without the guesswork.
Why It’s Critical to Start Now
Ongoing budget negotiations in Congress could slash the clean energy tax credits established by the Inflation Reduction Act (IRA). Both the U.S. House and Senate have now proposed legislation that would limit or eliminate access to several energy incentives. Notably, the Senate Finance Committee released a draft bill in June 2025 that proposes steep phase-downs for solar and wind tax credits, elimination of certain efficiency deductions, and shortened eligibility windows for electric vehicles and charging infrastructure.
While these proposals are not yet law, the policy landscape is shifting quickly. Agencies that begin planning and registering projects now are far more likely to lock in the full benefits available under current law.
| Recent Legislative Developments: What’s Ahead for Energy Tax Credits | ||
|---|---|---|
On May 22, 2025, the U.S. House proposed major changes to the IRA's clean energy credits. The Senate Finance Committee followed with a draft bill released the week of June 17, 2025. While the Direct Pay mechanism remains in place for now, several key credits could be phased out or drastically curtailed. ⚠️ Please note: This legislative process is still unfolding. The table below is for informational purposes only. | ||
Tax Provision | Applies To | Proposed Key Changes |
| Section 48E | ✔️ Solar | - 100% credit only if construction begins in 2025. - Phases down to 60% in 2026, 20% in 2027. - Expires for projects beginning construction after 2027. - Project must be placed in service by Dec 31, 2028. |
| Section 48E | ✔️Standalone Energy Storage | - No phase-out proposed in Senate draft. - Retains 30% credit through 2032. - Begins phasedown in 2033, reducing to 0% by 2036. - Aligns with the original IRA timeline. |
| Section 30D | ✔️EV Purchases | - New EV credit ends 180 days after enactment. - Used EV credit ends 90 days after enactment. - Applies to personal and fleet purchases. |
| Section 30C | ✔️EV Charging Infrastructure | - Credit expires 12 months after enactment. - Reduces planning certainty for public and private charging projects. |
| Section 179D | ✔️Energy Efficiency (Commercial Buildings) | - Deduction eliminated for projects beginning construction more than one year after enactment. - Affects new builds and major retrofits seeking tax deductions. |
Get Started with SoCalREN
Agencies interested in taking advantage of federal energy incentives should consider pre-registration and project scoping now to avoid missing critical deadlines. A SoCalREN Project Manager can provide personalized support at every step and ensure a smooth filing process.
Please Note: To receive Direct Pay assistance from SoCalREN, Public Agencies must be working on an energy efficiency project with us. Your Project Manager can help you develop an energy efficiency project aligned with your goals.
Already enrolled? Reach out to your SoCalREN Project Manager to get started.
New to SoCalREN? Visit socalren.org/join or email us at info@socalren.org to enroll today and unlock your agency’s clean energy savings potential.