OSPA Publishes a Direct Pay Tax Credits Guide for Tribal Nations

In 2022, Congress passed major changes to the U.S. tax code that allow, for the first time, Tribal Nations and other tax-exempt entities to use tax credits to fund clean energy projects. Tribal Nations can also take advantage of tax incentives for making energy efficiency improvements to commercial buildings they own. This is a historic development that greatly increases the ability of Tribal Nations to own, control, and fund clean energy projects on Tribal lands.

Recognizing how complex tax laws and regulations can be, the Oceti Sakowin Power Authority has published the “Direct Pay Tax Credits: A Guide for Tribal Nations” to help Tribes and Tribal organizations understand how to use these tax incentives and receive direct payment.  The Guide provides an overview of these tax incentives, some details on how they can be applied, and discusses key factors that should be considered in preparing to make the tax credit elections. As tax-exempt entities, Tribes and Tribal organizations may not be familiar with working with the IRS and filing tax returns. The Guide  also provides information on how to set up an organizational account in the IRS system, register your qualified projects, and make your direct pay election for tax credits.

Click here to read The Guide.