Some Universities to Miss Out on Monetizing Clean Energy Tax Credits

Ambiguity in President Joe Biden’s tax-and-climate law could prevent some public universities from monetizing millions of dollars of clean energy tax credits.

Colleges and universities often don’t have tax liability, so the option for direct pay—or when the credits can be treated as refundable payments—gives institutions with 501(c)(3) status an opportunity to tap into the incentives.

However, not all public universities have 501(c)(3) status, and when the law lists eligible groups, it omits institutions that are considered an instrumentality of the state.

Unless universities are certain they are eligible, many will wait to start projects until there is more clarity ...