Along Those Lines: How Direct-Pay Incentives Will Change the Game for Co-ops

A provision in last year’s Inflation Reduction Act for direct-pay incentives gives electric co-ops tax parity with industry counterparts when they deploy new energy technologies such as carbon capture, nuclear, energy storage and renewables. (Photo By: Alexis Matsui/NRECA)

Last year, electric cooperatives saw a major legislative victory with the inclusion of a provision for direct-pay incentives in the Inflation Reduction Act. The new law gives co-ops and other tax-exempt entities the ability to receive reimbursements from the government for deploying certain new energy technologies, putting them on a playing field with for-profit providers.

This episode is sponsored by Power & Tel.

How did co-ops secure this groundbreaking change in the tax code, and how does it change the game for them going forward? Hear from Paul Gutierrez, NRECA legislative affairs director, Mac McLennan, CEO of Minnkota Power Cooperative in North Dakota, and Eric Jung, CEO of Northeastern REMC in Indiana.

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