L4GG and Giraffe Financial Team Up to Simplify Clean Energy Tax Credit Filing for Underserved Entities

Ahead of Nov. 15 Deadline, Partnership Fills Gap in Complex IRS Process for Clean Energy Projects Completed in 2023 

Lawyers for Good Government (L4GG) and Giraffe Financial have joined forces to streamline electronic filing (E-filing) for clean energy tax credits under the Inflation Reduction Act (IRA). This initiative will make the process more accessible and affordable for tax-exempt entities, such as local governments, nonprofits, state agencies, and Tribal governments. Many of these entities are facing a November 15, 2024, IRS filing deadline to claim incentives for their electric vehicle purchases, electric vehicle charging, wind, solar, energy storage, and geothermal projects completed in 2023.

LEARN MORE HERE: https://giraffe.financial/2023efilingspecial/

The L4GG and Giraffe partnership is the first in its field to simplify this process and make it more affordable. E-filing for elective pay has become a costly, intractable problem that is difficult and time-consuming for communities that are leading on the clean energy transition with the help of the IRA’s funding, but lack the means and in-house experts to navigate a complex tax system.

To support these organizations, L4GG has developed the Clean Energy Tax Navigator, a free resource that walks through the process of determining eligibility for IRA tax credits, offering technical assistance, direct pro bono services in certain need-based cases, and free annotated tax forms to help entities complete the tax forms themselves. 

Now, to complement L4GG’s support and enable entities to E-file with the IRS and receive tax refunds in a timely manner, Giraffe Financial is providing a one-time special E-filing service. Between now and November 15, 2024, Giraffe Financial is offering this E-file service for just $350 per project. This significantly discounted fee is only available to qualified entities that have gone through the Tax Navigator or otherwise received services from L4GG, received an IRS pre-filing registration number for their project(s), and worked with the annotated tax forms (made by L4GG and their partners) to prepare forms for their 2023 filings. 

For all other organizations looking to file for projects completed in 2023 or beyond, Giraffe continues to offer its standard ‘tax credits-as-a-service’ performance-based pricing where Giraffe recoups a percentage of the value of credits it helps entities monetize.

The current special Giraffe/L4GG partnership price of $350 per project is based on the 350 parts per million atmospheric concentration of CO2 that we need to reach to address climate change. Both Giraffe and L4GG are committed to empowering organizations to become part of the climate solution by deploying clean technologies in a cost-effective manner by leveraging federal IRA funding. This partnership and discounted E-file offering intends to help catalyze the elective pay marketplace and demonstrate that organizations of all types can take advantage of IRA incentives.   

Giraffe’s reduced fees will help advance the Biden/Harris administration’s Justice40 Initiative, which made it a goal that 40 percent of the overall benefits of certain Federal climate, clean energy, affordable and sustainable housing, and other investments flow to disadvantaged communities that are marginalized by underinvestment and overburdened by pollution. It will also advance L4GG’s mission of ensuring this historic federal funding is equitably distributed.

“Far too many state & local governments, frontline communities, tribal governments, school districts, and nonprofits have completed clean energy projects but may miss out on valuable tax credits because they don’t have the time, resources, or knowledge to wade through complex IRS requirements and paperwork,” said Jillian Blanchard, L4GG’s Director of Climate Change and Environmental Justice Program. “One of those IRS requirements is e-filing, but many CPAs and e-filing services have yet to catch up with the new elective pay forms, cannot actually complete a comprehensive e-filing package, or are cost-prohibitive for under-resourced communities. L4GG saw this need, and is proud to partner with Giraffe to fill the gap, protecting those ushering in the clean energy transition by offering an affordable, comprehensive option to help communities e-file for elective pay and to make sure that everyone, especially communities in need, can benefit from the powerful new IRA tax incentives.”

"This partnership underscores the shared commitment of Giraffe Financial and L4GG to foster a cleaner, more just future by empowering all communities to access the benefits of the clean energy transition,” said Jason Prince, CEO of Giraffe Financial.

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Lawyers for Good Government (L4GG) is a community of 125,000 legal advocates in all 50 states working  to ensure equal rights, equal opportunities and equal justice under the law. We coordinate large scale pro bono programs and issue advocacy efforts, seeking not only to establish and enforce equality under the law, but to also create the social and economic conditions that lead to true equity. L4GG’s CCEJ Program works to expedite a just transition to a green economy.

Giraffe Financial provides tax credits-as-a-service to enable organizations of all types to seamlessly take advantage of Inflation Reduction Act (IRA) incentives. Giraffe’s turnkey offering includes: determining eligibility for credits, calculating credit amounts, documenting regulatory compliance, managing prevailing wage and apprenticeship (PWA) requirements, completing IRS pre-filing registrations, preparing tax forms, E-filing for Elective Pay, and structured transactions for Transfers. Giraffe is exclusively focused on navigating the complexity of the IRA on behalf of our clients - IRA is right there in our name.

L4GG at the White House and Climate Week: Lawyers Leading the Charge for Clean Energy and Community Transformation

The last few weeks have been nothing short of extraordinary for Lawyers for Good Government (L4GG) and our Climate Change and Environmental Justice (CCEJ) team. Our participation in high-level meetings, from the White House to Climate Week NYC, underscored just how far we’ve come in using legal expertise to help under-resourced communities access critical funding to build clean energy projects.

As Jillian Blanchard, Director of the Climate Change & Environmental Justice Program at L4GG, shared:

"This experience has been the highlight of my career, but more importantly, it highlights just how far we’ve come at L4GG in making a real impact on communities that need it most.  There is much more work to do, and we’re ready to take on this challenge."

Throughout these events, L4GG was recognized by federal leaders, nonprofit organizations, and community advocates for our critical role in helping communities navigate the complexities of federal funding. Here's a recap of the key moments from our recent engagements.

White House Meetings: State Implementation Accelerator (9/16–9/18)

L4GG was proud to be one of three technical assistance providers selected to support the State Implementation Accelerator, where we provided guidance to multiple states, including Rhode Island, Washington, Michigan, and Arizona, on how to equitably implement billions of dollars in funding from the Infrastructure Law and the Inflation Reduction Act (IRA).

At the White House, our team met with senior officials such as John Podesta, Senior Advisor to the President for Clean Energy Innovation and Implementation, and Tom Perez, Senior Advisor to the President and former U.S. Secretary of Labor. Both acknowledged L4GG’s leadership in ensuring that clean energy projects serve the needs of local communities.

Phoenix Convening on Direct Pay with the Congressional Progressive Caucus Center (9/18–9/19)

Immediately after the White House meetings, our team flew to Phoenix to present at a convening focused on Direct Pay, a critical provision in the IRA, with our partners at the Congressional Progressive Caucus Center. The event brought together nonprofits and community leaders in the Southwest, eager to access federal funding for transformative projects.

One powerful story from this convening featured an 18-year-old advocate who successfully convinced his Arizona school board to build a solar energy project that will save the district $25 million over the next 15 years. This project, powered by IRA funding, highlights the potential of community-driven efforts to create real change.

Climate Week NYC: Emerging Development Strategies from Public Authorities (9/23)

At Climate Week NYC, we attended a panel on emerging strategies for using IRA funds to scale renewable energy projects. One of the standout discussions focused on Minnesota’s efforts to bring solar energy to half of the state’s schools, a groundbreaking initiative that will significantly reduce energy costs while creating jobs and improving air quality.

During this event, Paul Williams from the Center for Public Enterprise specifically recognized L4GG for our legal and technical expertise in helping under-resourced communities navigate clean energy funding. It was a powerful moment of recognition for our work at both the federal and community levels.

Climate Week NYC: US Climate Alliance (9/23)

L4GG was invited to join US Climate Alliance and Governors Huchul, Inslee, and Grisham (climate leaders in the country) to witness the announcing of the 1,000,000 apprenticeship program for USCA Gov's Network - this program will put 1M to work in good green jobs to make sure that communities can take advantage of the green transition - it's a logical next step to their work with L4GG on pushing Elective Pay, which includes apprenticeship requirements.

Climate Week NYC: Green Finance (9/24)

L4GG joined roundtable discussions with many different partners to identify positive use cases of projects being built for communities using IRA dollars, including a community-scale wind farm on Tribal lands near the Dakota Access Pipeline, which was only made possible by community organizers, impact investing, and the IRA.

Climate Week NYC: Investing in Our Future - The 10-Year Promise of the IRA (9/24)

This event brought together a powerful panel of experts to discuss the long-term potential of the Inflation Reduction Act to drive sustainable clean energy transitions over the next decade. Key speakers included John Podesta and Peter Colavito from Invest in Our Future, who emphasized the importance of state-level implementation to ensure that IRA funding creates lasting impact.

Climate Week NYC: Expert Hubs on Direct Pay (9/25)

Later in the week, L4GG led discussions at several Expert Hubs focused on Direct Pay, providing guidance to non-taxable entities like schools and local governments on how to navigate the complexities of clean energy funding. Our team engaged with other experts and community leaders to map out the resources and support available for implementing clean energy projects.

Climate Week NYC: Protect the Dollars (9/26)

 L4GG met with critical partners in this space to discuss the best strategies for ensuring that a hostile Administration does not dismantle or clawback the historic federal funding approved under BIL, IRA, and many other bills.  We learned that once again, lawyers are critical in this space.

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Why This Matters

At L4GG, we believe that everyone deserves access to clean energy and climate resilience. We are seeing in real time in rural North Carolina what happens when communities do not have green and resilient infrastructure. But for many under-resourced communities, accessing the federal funds available for these projects is a daunting and complex process. That’s where L4GG comes in—we provide the legal expertise necessary to help communities navigate this process and unlock the funding that can transform their futures.

We are honored to have been recognized at the White House, at Climate Week, and by community leaders across the country for our work in this space. But more importantly, we’re beyond thrilled to see the impact of our work in action. But our work is just beginning. The need is great, and we’re committed to continuing to bridge the gap between federal funding and community impact.

Chevron Deference on Trial at SCOTUS: Impact Survey for Legal Practitioners

A Landmark Case

In the coming days, the U.S. Supreme Court will issue a ruling in Loper Bright Enterprises v. Raimondo, a pivotal case that could redefine administrative law by potentially overturning Chevron deference. Chevron deference, established in 1984, requires courts to defer to a federal agency’s interpretation of ambiguous statutes, recognizing the agency's expertise. This principle has been instrumental in maintaining consistent regulatory practices across various sectors.

The implications of this case extend beyond administrative law. A decision against Chevron deference could significantly impact federal regulatory authority in areas such as environmental protection, food and drug safety, employment, consumer protection, and immigration. It would shift more power to the judiciary, allowing courts to override agency interpretations and create a less predictable regulatory environment.

Understanding the Case: A Special L4GG Explainer

To help you grasp the complexities of this case and its potential consequences, L4GG has prepared an explainer document. This guide provides a clear understanding of the issues at stake, the arguments presented, and the broader significance of the Supreme Court's decision for regulatory practices in the United States.

Participate in Our Impact Survey

We are reaching out to our community of legal practitioners to gather insights on how the potential ruling might affect your practice. Please take this quick survey - your feedback is crucial in helping us understand how we can best support you in navigating the post-ruling landscape.

Why Your Input Matters

The outcome of Loper Bright Enterprises v. Raimondo could reshape the legal landscape in which we operate. Whether you specialize in administrative law, environmental law, healthcare, or any field subject to federal regulation, the ramifications of this decision could be profound. By participating in our survey, you will help L4GG prepare for the challenges ahead and ensure we can effectively mobilize our community in response to this landmark ruling.

We hope you will take a few minutes to share your thoughts with us. Together, we can stand ready to address the potential upheaval in administrative law and continue our fight for justice and regulatory stability.

L4GG Celebrates Critical Tax Change That Increases Public Sector Benefits in the Inflation Reduction Act

Lawyers for Good Government (L4GG), which has been working to expedite the equitable implementation of the Bipartisan Infrastructure Law (BIL) and the Inflation Reduction Act (IRA), celebrates a recent advocacy win that will make millions of dollars in direct pay tax credits available to two-thirds of the country’s cities and counties, school districts, and every single state agency that were previously blocked by conflicting IRS rules. 

The Issue:

In 2023, many public sector entities completed clean energy projects (such as buying electric school buses or EVs or constructing rooftop solar) with the expectation of reimbursement through the IRA’s Elective Pay Program, also known as ‘Direct Pay’. Direct Pay gives public sector entities and other tax-exempts the ability, for the first time, to receive a direct payment equal to the full value of tax credits for completing qualifying clean energy projects. Unfortunately, Treasury’s previous guidance, which seemed to contradict the text and intent of the IRA, deemed hundreds of early 2023 projects ineligible based solely on the fact that the applicant’s fiscal years do not match a calendar year.

Treasury’s previous guidance made these projects ineligible for direct pay, which can provide reimbursement of 30-70% of project costs.

This would have meant the loss of millions of dollars in projected revenue for small cities and school districts that were counting on these funds, not to mention every single state agency that placed a clean energy project in early 2023.

The issue impacted approximately two-thirds of all cities and counties, every single state, and many school districts, universities, and nonprofits with eligible 2023 projects that all have Fiscal Years that do not match the calendar year. L4GG had identified hundreds of projects at the state and local level whose Elective Pay credits were at risk as a result of this issue.

The Advocacy:

L4GG led advocacy efforts over the past few months to change the policy, including multiple meetings and sending a letter to the White House, documenting the issue and a proposed solution, in partnership with the Government Finance Officers Association (GFOA) and signed by 48 entities, including 18 cities and counties from 13 states. As a result of L4GG’s initial advocacy, the IRS first issued its Final Rule on March 5, 2024, where it allowed entities to file for Direct Pay on a calendar year to capture all 2023 projects. While this Final Rule enables all entities with 2023 projects to file for Direct Pay, therefore fixing the issue potentially blocking them from receiving tax credits for climate projects, it unfortunately did not provide guidance on how entities whose fiscal years do not align with their calendar year could subsequently realign their tax filings with the entity's pre-existing non-calendar fiscal year. As a result, entities would have had to maintain two sets of accounting records for the next 10 years! L4GG spoke to a number of cities and state agencies who, when notified of the provisions in the Final Rule, decided not to pursue tax credits for their early 2023 projects, simply because the administrative burden of maintaining separate accounting records was too high.

The Policy Change:

Given the input from our clients, L4GG continued informal advocacy via discussions with the White House to ensure new guidance was issued to clarify that fiscal year realignment was available to entities for future calendar years. As a result of our efforts, the IRS issued new guidance on Friday, April 19, 2024 that explicitly confirms that entities will be able to realign future filings in 2024 filings with their fiscal year. 

The new guidance, coupled with the Final Rule, commits the IRS to reducing administrative burden on entities, confirming that they will not have to maintain two sets of books for the duration of their Elective Pay filings. The guidance gives them assurance that multiple sets of books is temporary, and reduces their burden going forward. L4GG applauds the action of the IRS to ensure that hundreds of public entities will have access to critical funding for clean energy projects and will rely on Direct Pay in future years.

“By removing this early barrier to collecting earned IRA tax credits, risk-averse states and local actors will now feel more comfortable relying on Elective Pay to finance clean energy projects in the future. These changes will have a huge impact on the early success of the IRA uptake process and will help support the successful rollout of this revolutionary new program.”

— Jillian Blanchard, L4GG’s Director of Climate Change and Environmental Justice

One Year into the IRA, L4GG is Fighting to Ensure No Community is Left Behind

As we mark the first anniversary of the Inflation Reduction Act (IRA), there's much to celebrate. But there are also pressing questions to address. At the heart of this reflection is a critical concern: Is the landmark Justice40 Initiative, under President Biden’s administration, genuinely steering 40% of funding to our nation's most disadvantaged populations?

The IRA, in just one year, has catalyzed the creation of approximately 170,060 jobs across 44 states. It has injected a staggering $278 billion in investments into the economy, sprouting 272 new clean energy projects that have reached both our bustling cities and quaintest towns. However, as these impressive numbers roll out, we must pause and ponder: Are Black, brown, and historically marginalized communities truly benefiting? Are they even aware of the myriad of opportunities, like the Direct Pay tax program, lying at their doorstep?

Jillian Blanchard, L4GG’s Director of Climate Change and Environmental Justice, raises a poignant observation, “The Biden Administration has made some incredible strides in moving the clean energy market and investing in disadvantaged communities…but it needs to do a better job of communicating these opportunities to the American people and sharing success stories.” This remark, while acknowledging the strides taken, also underscores the journey ahead.

So, how is L4GG acting on this?

1. Empowering through Knowledge: Recently, we hosted a comprehensive free legal training centered on the Direct Pay initiative. This session, facilitated by experts from tax, project finance, and energy law sectors, educated over 200 entities. The attendees ranged from state and local governments to frontline communities. They were equipped with strategies to tap into elective pay for innovative green projects.
   

2. Standing Up for Marginalized Communities: At L4GG, we believe in direct action. Through our Decarbonization and Climate Resilience Funding Clinic, we are actively offering pro bono representation to overburdened communities. An example is our representation of the Indiana NAACP at the IURC. The objective? To influence state-wide EV infrastructure policies, ensuring they cater to the needs of all. This mission was showcased in a recent press conference that united Black equity leaders from Indiana. You can watch the press conference to learn more about the Indiana NAACP’s mission here.
   

3. Mapping the Road Ahead: We will soon release an updated version of our 50-state Disadvantaged Communities Report. This document aims to shed light on best practices for implementing Justice40, promote genuine community engagement, and establish methodologies to truly identify and uplift disadvantaged communities.
   

Looking back at a year since the IRA’s inception, our nation stands at a pivotal juncture. We have the tools, the resources, and the intent. The challenge now is to ensure that the benefits of our green transition reach every corner of our nation, leaving no community in the shadows.

Lawyers play an indispensable role in this narrative. Their expertise can serve as the bridge that connects disadvantaged communities to the complex web of climate legislation. Through understanding, advocacy, and representation, they can demystify the opportunities and funding available, ensuring everyone gets a fair share of the green future. L4GG will continue to mobilize the legal community to champion the causes of overburdened communities, simplify the intricacies of laws like the IRA, and fight for an equitable future!