Energy Efficiency

Property Assessed Clean Energy (PACE) – Focus on Energy provides information about PACE. PACE is an innovative program enabling property owners to obtain low-cost, long-term loans for energy efficiency, renewable energy, and water conservation improvements. PACE Financing is sourced from an open lending market and secured through a voluntary PACE Special Charge, repaid directly to the lender. Eligible properties include commercial (office, retail, warehouse, hospitality), agriculture, and industrial located within a participating community. This includes for-profit businesses and nongovernment, tax-exempt properties such as privately-operated community centers and hospitals. Multifamily buildings of five units or more are also eligible.

Contact Holly Edinger at 608.210.7184 or hedinger@slipstreaminc.org for more information.

179D Commercial Building Deduction (only for tax paying entities)

Note: 179D shall not apply to property the construction of which begins after June 30, 2026.

There are two pathways to pursue a 179D tax deduction: 

1. The Traditional (Modeling) Pathway, sometimes referred to as the deduction for energy-efficient commercial building property (EECBP), which is applicable to both new construction and building upgrade projects.
2. The Alternative (Measurement) Pathway, sometimes referred to as the deduction for energy-efficient building retrofit property (EEBRP), which is applicable for upgrades to buildings placed in service at least five years before the outset of the upgrade project.

Solar

Couillard Solar Foundation – The Couillard Solar Foundation provides grant funding to support installation of solar panels in Wisconsin. They have three different exciting programs.

1. Solar for Good supports installation of solar for nonprofit organizations and houses of worship. 
2. Solar on Schools aims to help Wisconsin schools realize the financial, educational, and community benefits of going solar. 
3. CSF Solar Canopies are freestanding solar structures. Proceeds from the solar canopies directly support the Couillard Solar Foundation. 

Energy Credits (available to non-taxed entities through Elective Pay)

Clean Energy Investment Tax Credit 48E (ITC) and Production Tax Credit 45Y (PTC) for solar remain in place until December 31, 2027. These credits are accessible to non-taxed entities through Elective Pay (also known as Direct Pay). Major restrictions will phase in after the end of 2025. Details on the restrictions are listed below, entities can avoid the added complexity listed below by starting projects in 2025.

Beginning in 2026 entities seeking these credits will need to avoid Prohibited Foreign Entities Concern (PFE). Visit the NYU Law Center for more information on PFE.

Projects that can comply with PFE must “commence construction” by July 4, 2026, or be placed in service by December 31, 2027. For more information about what constitutes commence construction visit Norton Rose Fullbright.

Lawyers for Good Government Provides Resources for Elective Pay (Direct Pay):

Step 1: Have questions? Start with the L4GG Resource page

Step 2: Ready to move forward? Complete the L4GG Tax Navigator

Focus on Energy Solar Grants

Focus on Energy Provides grants for solar of up to $25,000 for commercial entities and $35,000 for agricultural producers.

As detailed above, Focus on Energy also has funding for solar through its Property Assessed Clean Energy (PACE) program.

Battery Storage

Energy Credits (available to non-taxed entities through Elective Pay)

The Investment Tax Credit 48E (ITC) and Production Tax Credit 45Y (PTC) for battery storage remain in place through 2033 for the full value. They decrease to 75% in 2034 and 50% value in 2035. Prohibited Foreign Entities of Concern (once again detailed by the NYU Law Center) apply beginning in 2026. 

Lawyers for Good Government Provides Resources for Elective Pay (Direct Pay):

Step 1: Have questions? Start with the L4GG Resource page

Step 2: Ready to move forward? Complete the L4GG Tax Navigator

Geothermal

Energy Credits  (available to non-taxed entities through Elective Pay)

Following passage of HR 1, the clean energy credit for geothermal IRC Section 48 remains fully intact. This means that Direct Pay (Elective Pay) eligible entities can receive a direct payment for 30% (or more) of the expenses of a geothermal system installed through 2034. There are no prohibited foreign entities of concern regulations for geothermal systems, however, systems over 1 MW must meet domestic content requirements. Also, projects must meet prevailing wage and apprenticeship criteria to receive the full 30% credit.

Lawyers for Good Government provides resources on Elective Pay (Direct Pay):

Step 1: Have questions? Start with the L4GG Resource page

Step 2: Ready to move forward? Complete the L4GG Tax Navigator