What is CETCAP, and how can it help you save money?





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CETCAP Newsletter



*Federal Clean Energy
Tax **Assistance Program*











NEWSLETTER




*May 7, 2026*






Washington Department of Commerce’s Federal Clean Energy Tax Assistance Program (CETCAP) [ [link removed] ] provides free, pro bono legal and filing assistance to help eligible Washington organizations learn about, plan for, and file for elective pay (direct pay) tax credits




*IN THIS ISSUE:*

What is CETCAP? [ #intro ]
Program update [ #update ]
Spotlight on King County [ #spotlight ]
Upcoming events [ #events ]
Resources [ #resources ]

[ [link removed] ]






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What is CETCAP, and how can it help you save money?

Elective pay (often referred to as direct pay) allows tax-exempt entities to take advantage of federal clean energy tax credits. With elective pay, eligible entities can now receive 30-70% of project costs reimbursed.

CETCAP provides free legal, technical and filing support to help Washington entities to navigate this process and bring your low-cost energy projects to life. The program has helped more than 200 Washington organizations access these incentives. CETCAP can help you determine project eligibility, plan new work, meet IRS deadlines, and prepare accurate filings — all at no cost.

Examples of eligible entities that can now receive payment for a portion of their clean energy investments include:


* Tribal governments
* Nonprofits
* School districts
* Houses of worship
* Municipal governments and ports
* Rural electric cooperatives

Examples of eligible projects include:


* Powering public schools, municipal buildings, ports, churches, food banks, and others with solar
* Creating resilience hubs at communal locations using battery storage to offer support services during power outages
* Keeping public school air clean, and affordable, with ground-source heat pumps

*Ready to learn, plan or file?* Contact Lawyers for Good Government [ [link removed] ] for a free 30-minute call with an expert.

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Program update

What's eligible?

Federal legislation passed in 2025 (the "One Big Beautiful Bill Act") modified several clean energy tax credit provisions. The good news: Elective pay remains fully intact as a mechanism, and significant credits are still available. Here's what matters most for CETCAP participants:


* *Solar and wind projects:* Remain eligible, but they face new deadlines. Construction must begin by July 4, 2026, to qualify under the original credit timeline, which allows the credit to remain available through the early 2030s. If projects do not meet the July 4 beginning-of-construction deadline, they must be placed into service by the end of 2027 to be eligible for the credit. Projects are now subject to prohibited foreign entity restrictions. Contact CETCAP [ [link removed] ] if this applies to you.
* *EV charging infrastructure:* The Alternative Fuel Vehicle Refueling Property Credit (30C) is terminated for property placed in service after June 30, 2026. If your organization has an EV charging project in progress, it must be placed in service before that date to qualify. Contact CETCAP [ [link removed] ] if this applies to you.
* *Geothermal, ground-source heat pumps, hydro and nuclear power sources:* These credits remain eligible through the early 2030s, and are not subject to any changes. Contact CETCAP [ [link removed] ] to learn more about these projects.
* *Batteries and energy storage systems:* These credits remain eligible through the early 2030s and are now subject to prohibited foreign entity restrictions. Contact CETCAP to [ [link removed] ] help you navigate them.

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Spotlight

King County receives millions in federal clean energy credits

Working with CETCAP, King County has received more than $7.2 million in federal energy tax credits.

To date, King County has received:


* $4.6 million back for a battery storage system at the West Point Treatment Plant, which prevented pollution going into the Puget Sound by providing backup power during storms
* $1.9 million for 244 new electric fleet vehicles
* $440,000 for 11 electric metro buses serving south King County
* $285,000 for rooftop solar at transfer and wastewater facilities

"This collaborative approach saves ratepayer dollars and generates clean power, a true win-win,"  — "Kamuron Gurol, Director, King County Wastewater Treatment Division"

Read the full story: King County Field Notes [ [link removed] ]

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Events

* *CETCAP Office Hours:* Join us weekly for a live overview of available clean energy tax credits from our partners at Lawyers for Good Government and ask questions about your projects.
* Sign up for our monthly meeting on the second Wednesday of May [ [link removed] ]
* Sign up for our monthly meeting on the third Friday of May [ [link removed] ]

* *Cool Classrooms on a Budget* *– How Federal Energy Tax Credits Can Help:* Hear from experts about how school districts can incorporate ground-source heat pumps to support comfortable classrooms, minimize demands on maintenance staff, improve building resilience and reduce air pollution.
* Sign up for the May 11 webinar [ [link removed] ]

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Resources

* Lawyers for Good Government: Elective Pay overview [ [link removed] ]
* MRSC Insight: Got clean energy projects? Free program helps local agencies recoup Some program costs [ [link removed] ]
* UndauntedK12 - Ground-source heat pumps: A modern HVAC choice for WA schools [ [link removed] ]

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In case you missed it

The Washington State Green Bank has received $25 million in funding and is now rebranding as Washington Builds. The program creates financing tools that help you combine federal tax credits, utility rebates and private funding to make clean energy upgrades more affordable.

Learn more about Washington Builds [ [link removed] ]

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CETCAP is supported with funding from Washington’s Climate Commitment Act (CCA). The CCA supports Washington’s climate action efforts by putting cap-and-invest dollars to work reducing climate pollution, creating jobs, and improving public health. Visit www.climate.wa.gov [ [link removed] ] for more information.


















About Commerce

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