Unlocking Elective Pay Grant Program

Purpose: The Unlocking Elective Pay Grant Program (MI Healthy Climate Challenge, Challenge #2) funds the development and deployment of strategies that help nonprofits, local and Tribal governments, public school districts, electric cooperatives, houses of worship, and other tax-exempt entities access and utilize federal clean energy tax credits through Elective Pay (Direct Pay). Projects should overcome barriers such as complex eligibility, long reimbursement timelines, and limited awareness or capacity, and deliver community benefits like cost savings and equitable access. Project eligibility: Grants support planning, aggregation, and financing strategies that enable clean energy deployment, including portfolio bundling across multiple sites, development of bridge financing or other financial tools, compliance support, and technical assistance; this program is not for capital or infrastructure costs and is not intended to fund individual projects applying for Elective Pay by themselves. Additional applicant criteria: For-profit applicants must partner with a nonprofit or public-sector entity; out-of-state applicants must partner with a Michigan-based nonprofit or public-sector entity. Municipal/public entities may participate when partnering with eligible nonprofits or lenders. Indirect costs generally capped at 10%; pre-award costs are ineligible. Applicants receiving large federal/state funding may need to provide an A-133 audit. Application process: Competitive, two-step process. Step 1 required concept paper (posted 08/04/2025; due 08/31/2025). Only concepts marked 'encouraged to apply' (or 'encouraged with amendments') may proceed. Step 2 by-invitation full application opened 09/15/2025 and was due 11/02/2025 by 11:59 PM EST, submitted via the online portal with required materials (application form, Approved Budget Form, Project Timeline Template, price estimates as applicable, and most recent audit or financial statements).