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The IRS has released the long-awaited "Guidance on Elective Payments and Transfers of Certain Credits." 

On June 20, at 2:30 p.m. EDT, the Beneficial Electrification League (BEL) and the Tax Law Center at NYU will be reviewing the new guidance on direct pay tax incentives in a webinar. Register here.

For years, tax-exempt utilities could not take advantage of federal tax incentives intended to spur clean energy development. With the passage of the Inflation Reduction Act (IRA), rural electric cooperatives, municipal utilities, and Tribal governments now have access to these generous incentives. 

BEL and NYU’s Tax Law Center experts will explore the mechanics of direct pay incentives and shed light on how these incentives can inform decisions on infrastructure investment. This webinar will be focused on electric sector investment, particularly related to electric cooperative and municipal utilities. 

USDA's Rural Utilities Service Heads to Kansas and Nebraska to Discuss PACE and New ERA

On May 16, the U.S. Department of Agriculture’s Rural Utilities Service (RUS) announced $10.7 billion in federal funding for two new programs: Empowering Rural America (“New ERA”) and Powering Affordable Clean Energy (PACE). 

Chris McLean, U.S. Department of Agriculture Assistant Administrator, is heading to Wichita, Kansas, and Lincoln, Nebraska, to brief utility leaders on both programs.

• Kansas meeting: June 22 -- 3:00 p.m. to 5:00 p.m. CDT at KPP Energy in Wichita, Kansas (Information and registration: https://be-league.org/events/usda-wichita/)
• Nebraska meeting: June 23 -- 9:00 a.m. to Noon CDT at Lincoln Electric System in Lincoln, Nebraska (Information and registration: https://be-league.org/events/usda-nebraska/)

At the meetings, which are intended for cooperative, municipal, and Tribal utility staff, McLean will explain the programs, including eligibility requirements and how to participate.

PACE offers $1 billion in RUS loans for renewable energy infrastructure. The Inflation Reduction Act (IRA) requires the agency to forgive up to 50% of the loan amount. Eligible entities include electric service providers, including municipal, cooperative, investor-owned, and Tribal utilities.

New ERA offers up to $9.7 billion for loans, grants, loan modifications, and other financial assistance to support the purchase of renewable energy systems, zero-emission systems, and carbon capture systems. Funding also may be used to deploy these systems or to make energy-efficiency improvements to generation and transmission systems of eligible entities.

New Resources! Analysis and Tools for Utilities Exploring RUS Funding Opportunities 

BEL has new resources for utilities as they consider whether to participate and, if the answer is yes, start drafting a Letter of Interest – the first step in applying for the new funds. 

USDA FUNDING SUPPORT RESOURCES

• Program overviews 
• Letter of Interest templates 
• Maps to determine PACE funding eligibility (levels of loan forgiveness) 
• Links to key USDA tools and resources 

For information on sponsorship of BEL, please click below.

BEL is a 501(c)3 organization.