Much of the Inflation Reduction Act signed into law in late 2022 contains provisions intended to combat climate change, largely through tax incentives. Such tax breaks aren’t usually relevant to the work of nonprofits. But for organizations constructing new facilities or adding improvements, the Act’s changes to one tax deduction could benefit them. This article reviews the benefits available under the Act. In addition, a short sidebar covers how the Act allows eligible organizations to receive certain tax credits — which otherwise would be of little use to nonprofits that pay no income tax — as direct payments from the IRS.
Continue reading How an energy-efficient building tax deduction could pay off for nonprofits