Chamber Resource Corner: Elective Pay Financial Assistance for Michigan’s Clean Energy Projects
Are you considering a clean energy project for your nonprofit, municipality, school, or organization but are unsure how to fund it? Elective Pay, often referred to as “direct pay,” is a federal program that allows tax-exempt entities to take advantage of clean energy tax credits for eligible projects.
Through Elective Pay, eligible organizations may receive reimbursement for a portion of qualifying clean energy investments, helping communities pursue sustainability projects while reducing upfront financial barriers.
Examples of eligible entities include:
• Tribal governments
• Nonprofits
• School districts
• Houses of worship
• Rural electric cooperatives
• Other tax-exempt organizations
Eligible projects may include:
• Solar energy systems
• Battery storage
• EV charging stations
• Geothermal heating and cooling systems
• Other qualifying clean energy improvements
To help organizations better understand and navigate the Elective Pay process, the Michigan Infrastructure Office Technical Assistance Center (TAC) offers educational resources, technical assistance, and support opportunities throughout the state.
In November 2025, the Michigan Infrastructure Office launched its Elective Pay Ambassador Program (EPAP), connecting communities with trained Elective Pay experts who can answer questions and provide guidance related to tax credits, project planning, filing requirements, and available resources.
Local Ambassador Kim Heumann serves Jackson, Lenawee, and Hillsdale Counties and is available to assist eligible organizations throughout the process.
Organizations currently planning clean energy projects or completing projects from 2025 and beyond are encouraged to explore the opportunities available through Elective Pay and connect with their local ambassador for guidance and support.
For additional information or assistance, contact:
Kim Heumann
heumannk@2030districts.org
Learn more about the Michigan Infrastructure Office Elective Pay Program here:
Michigan Infrastructure Office Elective Pay Program
