August 22nd Webinar with the Treasury on Elect/Direct Pay


Last year, the Inflation Reduction Act (IRA) made important changes in infrastructure and energy development, creating a new credit delivery mechanism that tribes can take advantage of known as Elective (or more commonly Direct) Pay. This past June, the Department of the Treasury and IRS released proposed guidance for the IRA’s Direct Pay provisions.

On August 22nd from 2pm to 3:30pm Eastern Time, NAFOA is cohosting a webinar on the IRA’s Direct Pay provisions with the Department of the Treasury and key policy makers in the Senate.

With introductions by Treasurer of the United States Chief Lynn Malerba and IRA Chief Implementation Officer Laurel Blatchford, this webinar will focus on how tribes can access this new opportunity, hear first-hand from the Department about the availability of the Direct Pay tax credits, what they can be used for, and what kind of assistance is available to tribes.

“The Inflation Reduction Act’s new tools to access clean energy tax credits are a catalyst for meeting President Biden’s historic economic and climate goals. They will act as a force multiplier, bringing governments and nonprofits to the table,” said Secretary of the Treasury Janet L. Yellen. “More clean energy projects will be built quickly and affordably, and more communities will benefit from the growth of the clean energy economy.”

The Inflation Reduction Act allows tax-exempt and governmental entities to receive elective payments for 12 clean energy tax credits, including the major Investment and Production Tax credits, as well as tax credits for electric vehicles and charging stations. Businesses can also choose elective pay for three of those credits: the credits for Advanced Manufacturing (45X), Carbon Oxide Sequestration (45Q), and Clean Hydrogen (45V).

The Inflation Reduction Act also allows businesses not using elective pay to transfer all or a portion of any of 11 clean energy credits to a third-party in exchange for tax-free immediate funds, so that businesses can take advantage of tax incentives if they do not have sufficient tax liability to fully utilize the credits themselves. Entities without sufficient tax liability were previously unable to realize the full value of credits, which raised costs and created challenges for financing projects.

“Direct pay is a game-changer for our ability to spread the benefits of clean energy to every community in America,” said John Podesta, Senior Advisor to the President for Clean Energy Innovation and Implementation. “This provision of the Inflation Reduction Act will make it easier for local governments, Tribes, territories, nonprofits, schools, houses of worship and more to invest in clean energy, allowing them to save money, improve public health, and better serve their communities.”


NAFOA Announces Former Yurok Tribal Leader Susan Masten As Interim Executive Director

NAFOA, founded as the Native American Finance Officers Association, names former Yurok Tribal Leader Susan Masten as its interim executive director effective today, June 1, 2023. She was appointed to the position by the NAFOA Board of Directors. As interim executive director, Masten will be responsible for managing the day-to-day operations of the organization, as well as leading its strategic direction.

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