Clean Energy Tax Credits We Can Help You Pursue
Energy projects can create valuable tax benefits, but identifying eligible credits and meeting the requirements to claim them takes planning. The right strategy depends on your project, your organization, and the incentives available. Several credits are phasing out sooner than expected, so timing matters.
MGO works with you to identify applicable credits, evaluate eligibility requirements, and develop a tailored approach to claiming available benefits. We can also help you navigate pre-filing requirements and tax filings, addressing potential setbacks before they get in the way of your claims.
Areas of opportunity for energy credits include:
Clean Electricity
- Clean Electricity Investment Credit (Section 48E; Section 48 for earlier projects): Credit based on eligible investment in qualifying energy property.
- Clean Electricity Production Credit (Section 45Y; Section 45 for earlier projects): Credit based on electricity produced from qualifying sources.
- Zero-Emission Nuclear Power Production Credit (Section 45U): Credit for electricity produced at qualifying nuclear facilities.
Manufacturing and Advanced Energy
- Advanced Manufacturing Production Credit (Section 45X): Credit for domestic production of eligible clean energy components.
- Advanced Energy Project Credit (Section 48C): Credit for investment in qualifying advanced energy projects.
Clean Fuels and Hydrogen
- Clean Hydrogen Production Credit (Section 45V): Credit for producing qualified clean hydrogen.
- Clean Fuel Production Credit (Section 45Z): Credit for producing lower-emission transportation fuels, including sustainable aviation fuel.
Carbon Capture
- Carbon Oxide Sequestration Credit (Section 45Q): Credit for capturing and storing or utilizing carbon oxide (CCUS).
Credit availability, requirements, and deadlines vary by project and taxpayer. MGO can help you evaluate which credits may apply and what you need to do to claim them.
Clean Energy Tax Credit Services
Start-to-Finish Project Management
One team manages your credit project from the first eligibility review through your final filed return. Our services are all-inclusive: strategy, pre-filing registration, compliance, return preparation, and financing guidance are all part of the engagement. Pursuing the maximum credit value available to you is part of that service, not an add-on, so you don’t have to worry about change orders, hidden costs, or surprise upcharges along the way.
Strategy and Planning
We start by identifying which credits and bonus credit programs fit your project, including solar, wind, geothermal, and other clean technologies. Then we turn those findings into a plan that captures more value and limits costly setbacks. Where bonus credit programs require a separate application, we manage that process too.
Pre-filing and Compliance
We handle the IRS pre-filing registration process on your behalf, including documentation and compliance checks, so your project is well positioned before a return is filed.
Filing and Strengthening Returns
Once your project is complete, we prepare and file the necessary returns, including Form 990 or 990-T and Form 3800. We also confirm that your elective pay or transferability election is valid and structured to deliver its value, where applicable.
Financing Consultations
We advise on how bridge or debt financing affects your credit claims, including considerations for tax-exempt bonds.
Clean Energy Tax Credits for Governments and Nonprofits
State and local governments, Tribal governments, nonprofits, and other tax-exempt organizations that owe no federal income tax can still benefit from clean energy tax credits through elective pay (also called direct pay). Elective pay lets eligible entities receive the value of qualifying credits as a payment from the IRS.
MGO helps these organizations evaluate eligibility, complete pre-filing registration, and file the returns required to claim payment. Elective pay claims require a timely filed return, which makes early planning important.
Frequently Asked Questions About Clean Energy Tax Credits and Elective Pay
What is included in MGO’s clean energy tax credit services?
MGO manages the entire credit process. That includes identifying eligible credits and bonus programs, completing IRS pre-filing registration, preparing and filing your returns, validating your elective pay or transferability election, and advising on how financing affects your claims. These services are all-inclusive, so you don’t need to separately engage us for each step.
Will I be charged extra for change orders, additional work, or maximizing my credits?
No. Our services are all-inclusive, and pursuing the maximum return available for your project is part of the engagement, not an upsell. If your project changes significantly, such as adding a new facility or technology, we’ll talk with you about it up front before any work begins.
What is elective pay?
Elective pay, also called direct pay, allows eligible tax-exempt organizations and government entities that owe no federal income tax to receive the value of certain clean energy tax credits as a payment from the IRS. Eligible entities include nonprofits, state and local governments, Tribal governments, and public utilities. Payment is claimed by filing a federal return.
Can nonprofits and governments claim clean energy tax credits?
Yes. Through elective pay, tax-exempt organizations and governments can claim credits for qualifying projects, such as solar, wind, geothermal, energy storage, biogas, and renewable natural gas. Eligibility depends on the credit, the project’s timing, and other requirements, so evaluating a project early is important.
Which clean energy tax credits are still available?
Many remain available, including 45Y and 48E for clean electricity, 45X for advanced manufacturing, 45V for clean hydrogen, 45Z for clean fuels, 45Q for carbon capture, 45U for nuclear power, and 48C for advanced energy projects. The 2025 tax law known as the One Big Beautiful Bill Act accelerated phase-outs for some credits, so deadlines vary by credit and technology.
What tax forms are used to claim clean energy credits?
Requirements depend on the entity and the credit. Common filings include Form 990 or 990-T and Form 3800, along with IRS pre-filing registration before a return is filed. MGO can help determine which apply to your project.
How can MGO help with clean energy tax credits?
MGO manages your project from start to finish. We build a tailored strategy around your project, handle IRS pre-filing registration, prepare and file your returns, and advise on how financing affects your credit claims, all within one all-inclusive engagement.
Our Perspective, Your Benefit
Leaders Ready to Serve You
As you grow, you face complex risks and opportunities. Benefit from hands-on guidance focused on delivering top-to-bottom value for you and your organization.
Michael Silvio, CPA
Tax Partner
David G. Bullock, CPA
Partner
Benjamin Lau, CPA, CGMA
Assurance Partner
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