[{"data":1,"prerenderedAt":-1},["ShallowReactive",2],{"detail-sidebar-cat-1-en-105":3,"doc-seo-305077-105":53,"doc-detail-305077-en":126},{"code":4,"msg":5,"data":6},0,"success",[7,14,19,24,29,34,39,44,49],{"id":8,"doc_module":9,"doc_module_name":10,"category_name":11,"show_sort_weight":12,"slug":13},11,1,"Template","Presentations",90,"presentations",{"id":15,"doc_module":9,"doc_module_name":10,"category_name":16,"show_sort_weight":17,"slug":18},12,"Resumes",80,"resumes",{"id":20,"doc_module":9,"doc_module_name":10,"category_name":21,"show_sort_weight":22,"slug":23},14,"Invoices",70,"invoices",{"id":25,"doc_module":9,"doc_module_name":10,"category_name":26,"show_sort_weight":27,"slug":28},15,"Posters",60,"posters",{"id":30,"doc_module":9,"doc_module_name":10,"category_name":31,"show_sort_weight":32,"slug":33},16,"Social Media",50,"social-media",{"id":35,"doc_module":9,"doc_module_name":10,"category_name":36,"show_sort_weight":37,"slug":38},17,"Forms",40,"forms",{"id":40,"doc_module":9,"doc_module_name":10,"category_name":41,"show_sort_weight":42,"slug":43},18,"Letters",30,"letters",{"id":45,"doc_module":9,"doc_module_name":10,"category_name":46,"show_sort_weight":47,"slug":48},21,"Paper Templates",5,"papers-templates",{"id":50,"doc_module":9,"doc_module_name":10,"category_name":51,"show_sort_weight":4,"slug":52},158,"General","general-158",{"code":4,"msg":54,"data":55},"ok",{"site_id":56,"language":57,"slug":58,"title":59,"keywords":60,"description":61,"schema_data":62,"social_meta":119,"head_meta":121,"extra_data":123,"updated_unix":125},105,"en","5-steps-toward-successfully-filing-for-the-ira-elective-pay-provision-for-local-clean-energy-projects","5 Steps Toward Successfully Filing for the IRA Elective Pay Provision for Local Clean Energy Projects","","Local governments pursuing elective pay under the Inflation Reduction Act for clean and renewable energy projects must follow a structured filing workflow. The guidance explains how cities select an appropriate tax year, complete prefiling via Form 990-T, obtain and use the required Clean Energy Account registration number, coordinate internal roles, and prepare portal information. Emphasis is placed on timing, internal controls, and meeting IRS deadlines to receive payment.",{"@graph":63,"@context":118},[64,80,101],{"@type":65,"itemListElement":66},"BreadcrumbList",[67,71,74,77],{"item":68,"name":69,"@type":70,"position":9},"https://docshare.wps.com","Home","ListItem",{"item":72,"name":10,"@type":70,"position":73},"https://docshare.wps.com/template/",2,{"item":75,"name":11,"@type":70,"position":76},"https://docshare.wps.com/template/presentations/",3,{"item":78,"name":59,"@type":70,"position":79},"https://docshare.wps.com/template/5-steps-toward-successfully-filing-for-the-ira-elective-pay-provision-for-local-clean-energy-projects/305077/",4,{"url":78,"name":59,"@type":81,"image":82,"author":87,"headline":59,"publisher":90,"fileFormat":93,"inLanguage":57,"description":61,"dateModified":94,"datePublished":95,"encodingFormat":93,"isAccessibleForFree":96,"interactionStatistic":97},"DigitalDocument",{"url":83,"@type":84,"width":85,"height":86},"https://docshare.wps.com/thumbnails/5-steps-toward-successfully-filing-for-the-ira-elective-pay-provision-for-local-clean-energy-projects/305077.png","ImageObject",442,249,{"name":88,"@type":89},"Rhys","Person",{"url":68,"name":91,"@type":92},"DocShare","Organization","application/pdf","2026-09-20","2026-09-19",true,{"@type":98,"interactionType":99,"userInteractionCount":9},"InteractionCounter",{"@type":100},"ViewAction",{"@type":102,"mainEntity":103},"FAQPage",[104,110,114],{"name":105,"@type":106,"acceptedAnswer":107},"What is the elective pay provision under the Inflation Reduction Act for local clean energy projects?","Question",{"text":108,"@type":109},"It encourages cities and other public entities to invest in clean and renewable energy projects and receive payment back through an IRS filing process, distinct from traditional grants.","Answer",{"name":111,"@type":106,"acceptedAnswer":112},"How do cities select the tax year for filing elective pay?",{"text":113,"@type":109},"Cities must establish a tax year and file required forms by the portal deadlines, choosing either the calendar year or their fiscal year, with IRS options for realignment for first-time filers.",{"name":115,"@type":106,"acceptedAnswer":116},"Why is prefiling registration important and what is required to file by the IRS deadline?",{"text":117,"@type":109},"Prefiling registers the city’s intent to file Form 990-T and generates a registration number; the registration number is required to submit taxes by the IRS deadline, so it must be completed in advance.","https://schema.org",{"og:url":78,"og:type":120,"og:title":59,"og:site_name":91,"og:description":61},"article",{"robots":122,"canonical":78},"index,follow",{"doc_id":124,"site_id":56},305077,1789821729,{"code":4,"msg":5,"data":127},{"doc_id":124,"user_id":128,"nickname":88,"user_avatar":129,"doc_module":9,"category_id":8,"category_name":11,"doc_title":59,"doc_description":61,"doc_content":130,"file_id":131,"file_url":132,"file_type":133,"file_size":134,"view_count":9,"is_deleted":4,"is_public":9,"is_downloadable":9,"audit_status":9,"page_count":135,"language":136,"language_code":57,"site_id":56,"html_lang":57,"table_of_contents":137,"faqs":138,"seo_title":139,"seo_description":61,"update_tm":125,"read_time":73},687207024643,"https://ap-avatar.wpscdn.com/davatar_3d24733baf745e90a7e4bdd5f77d97b2","5 Steps Toward Successfully Filing for the IRA Elective Pay Provision for Local Clean Energy Projects  \nThe elective pay provision under the Inflation Reduction Act (IRA) encourages cities, towns and villages—as well as other public entities—to invest in clean and renewable energy projects in their communities. But unlike grants, which have been the tried-and-true funding mechanism in the federal-local partnership, this is instead an“elective payment” program.  \nIntroduction  \nUnder the program, local governments must first invest in the project and then submit a tax form detailing the investment to the Internal Revenue Service (IRS) in order to receive payment back. It’s not the first of its kind but it is substantially different than grants and, therefore it’s important that cities, towns and villages have internal controls in place to file the tax information to receive the elective payment.  \nTogether the National League of Cities (NLC) and the Government Finance Officers Association (GFOA) are gearing up to see great success in the program. It is, after all, the opportunity of a lifetime for some cities who were already planning to make investmentsin clean and renewable energy projects to receive a return check from the IRS. For those cities who were on the verge of making these types of investments, it’s a nice nudge in that direction.  \nOne of the most critical elements for a city, town or village to file for elective payment is to understand the importance of timing. This is no strange concept for cities. After all, cities keep financial calendars with processes and procedures (and execute best practices) for budgets, fiscal years, audit processes and capital programs. This program maps just one more financial calendar over the year—establishing a tax year and in due process filing income tax statements to the IRS by the deadline.  \nAs we are supporting cities in preparing and prefiling for their elective payments, we are also witnessing starts and stopsand best practices for filing for the elective payment. This brief summarizes the key steps in the filing process and provides information that may help you approach and eventually successfully execute your city’s Inflation Reduction Act elective payment.  \n2 | NLC  \nSTEP 1  \nPick a Tax Year  \nAs mentioned, the elective payment is predicated on a city  \nestablishing a tax year and filing tax forms by the deadline of that tax form. Most citizens or permanent residents who work in the U. S. must file a form 1040 by April 15, unless they file for an extension. Similarly, all cities that plan to claim an elective payment  \nmust file their 990-T claiming the elective payment by the 15th day of the fifth month after the end of their tax filing year.  \nHowever, unlike individuals filing their 1040s, the tax year for cities has never been established up until this point. We know not all cities claim a calendar year tax year (aka January 1 – December 31) . Noting these differences, Treasury has afforded cities the option to select the calendar year or their fiscal year as the tax year (if the city’s fiscal year is different than the calendar year) . The IRS provides the opportunity to realign the tax year with the fiscal year for first-time filers. Stay tuned in late 2024 for instructions on that realignment.  \nTip: Cities would only choose the calendar year option if eligible projects were placed into service after January 1 but before the beginning of their fiscal year in 2023.  \n3 | NLC  \nSTEP 2  \nPrefiling Registration  \nOnce your city has selected its tax year, the next step in the process is to “prefile” your intention to file your city’s income taxes via  \nform 990-T. After successfully prefiling, your entity will receive a registration number. You MUST have a registration number to file your taxes by the IRS deadline, so this step should be done well in advance of the deadline.  \nThe first and most important part of the process is that each individual who is going to be ","cbCaiboX4RXmgPKi","https://ap.wps.com/l/cbCaiboX4RXmgPKi","pdf",1290020,6,"English","# Introduction\n## Program requirements and internal controls\n## Importance of timing\n# Step 1 - Pick a Tax Year\n## Calendar vs. fiscal year options\n## Eligible-project placement tip\n# Step 2 - Prefiling Registration\n## Clean Energy Account registration\n## Registration number and deadlines\n## Clean Energy Officer vs. Delegate\n## Information required in the portal","[{\"question\":\"What is the elective pay provision under the Inflation Reduction Act for local clean energy projects?\",\"answer\":\"It encourages cities and other public entities to invest in clean and renewable energy projects and receive payment back through an IRS filing process, distinct from traditional grants.\"},{\"question\":\"How do cities select the tax year for filing elective pay?\",\"answer\":\"Cities must establish a tax year and file required forms by the portal deadlines, choosing either the calendar year or their fiscal year, with IRS options for realignment for first-time filers.\"},{\"question\":\"Why is prefiling registration important and what is required to file by the IRS deadline?\",\"answer\":\"Prefiling registers the city’s intent to file Form 990-T and generates a registration number; the registration number is required to submit taxes by the IRS deadline, so it must be completed in advance.\"}]","5 Steps Toward Successfully Filing for the IRA Elective Pay Provision for Local Clean Energy Projects | PDF"]