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The Inflation Reduction Act (IRA) Helps Non-Profits Fund Solar Projects

The beneficial Investment Tax Credits (ITC) that for-profit organizations receive when installing solar systems are now available to tax-exempt organizations. This significant change will make solar installations much less costly for non-profit organizations, including synagogues.

It means the 30% Investment Tax Credit (ITC) that for-profit organizations rely on to lower the upfront costs of installing solar equipment will be helpful to tax-exempt organizations, as well.

Recognizing that tax-exempt organizations do not have tax liabilities, the Inflation Reduction Act (IRA) provides tax-exempt organizations with direct payment (reimbursement) for 30% of their solar system's installation costs.

Owning Solar Systems Is Much More Attractive With Investment Tax Credits (ITC)

Since investment tax credits didn't apply to tax-exempt organizations until 2023, solar synagogues would typically enter power purchasing agreements with third parties who would own & operate the solar equipment or lease the equipment. It was rare for synagogues to purchase solar panels.

Access to the Investment Tax Credits (ITC) will make owning solar equipment more attractive and lead many more synagogues to switch to solar.


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