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Energy & Utilities

§48 ITC Direct Pay / Transferability for Businesses

Commercial solar/storage ITC — sell credit for cash or take direct payment (nonprofits).

Overview

Commercial §48 Investment Tax Credit: 30% base (up to 70% with domestic content, energy-community, low-income adders). NEW post-IRA: tax-exempt orgs/govt can elect Direct Pay (IRS sends cash); for-profits can transfer/sell credits to third parties for 92–96¢/$1 (Crux, Basis Climate, Reunion). Turns tax credits into immediate cash flow.

Best fit
Commercial building ownersNon-profits with rooftop solarFor-profits with low tax appetite
Estimated impact
30–70% of solar CapEx converted to immediate cash

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