The Michigan Department of Environment, Great Lakes, and Energy (EGLE) and the Michigan Infrastructure Office (MIO) recently launched two programs to help nonprofits, public institutions, and other tax-exempt entities access federal clean energy tax credits through Elective Pay (Direct Pay). Elective Pay enables eligible entities like local governments, schools, and houses of worship to receive clean energy tax credits as direct cash reimbursements—making clean energy projects more affordable and accessible. 

The two new programs include:

• Unlocking Elective Pay Challenge: A competitive grant opportunity offering up to $2 million to support strategies that help tax-exempt entities use Elective Pay to finance clean energy projects. Funded projects will help with the creation and implementation of planning and/or financial support strategies that help tax-exempt community institutions in Michigan maximize federal clean energy tax credits. Applications open now, with concept papers due by August 31, 2025.
• Elective Pay Ambassador Program: A statewide initiative placing trained ambassadors in each of Michigan’s 10 Prosperity Regions to support local organizations pursuing Elective Pay-eligible clean energy projects. The program will pay stipends to host organizations (municipalities, nonprofits, etc.) that will house a regional Elective Pay Ambassador who will host educational events on Elective Pay, raise awareness about MIO TAC’s Elective Pay resources and technical assistance services, and ensure Elective Pay is embedded in clean energy project planning.  Applications are due by August 31, 2025.