LPPC President-Elect: Treasury’s New Elective Pay Guidance a “Significant Step Forward” for Public Power Customers

The U.S. Department of the Treasury’s newly released guidance on domestic content requirements for elective pay tax credits marks a pivotal step forward for public power utilities. By clarifying how municipally owned, not-for-profit utilities can meet these requirements, the guidance enables public power utilities to pursue projects that increase grid resilience, drive economic growth, and meet clean energy goals while obtaining the same federal support as for-profit entities.

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“This guidance is a significant step forward for the millions of Americans served by public power utilities,” said Tom Falcone, LPPC president-elect. “The elective pay tax credit enables public power to know whether they have met the domestic content requirements for tax credits when investing in clean energy projects. Most importantly, as not-for-profits, LPPC member utilities will pass the savings from these tax credits directly to the communities they serve. Going forward, it will be essential to maintain access to these credits to ensure public power utilities can continue driving economic growth and providing reliable, affordable energy to Americans for years to come.”