Thanks to the Inflation Reduction Act (IRA), there is more federal funding available – in the form of grants and tax credits – to help schools go green and save. Is your district making the most of this opportunity?
IRA funding is meant to help schools create healthy, sustainable learning environments by providing tax credits for clean energy and transportation, plus support for energy efficiency initiatives. Here’s a sampling of what’s available…
- Tax credits or direct payment to reduce installation costs for renewable energy sources like solar panels, geothermal heat pumps, and energy storage systems. Receive 6% to 30% of eligible costs, plus an additional 10% for meeting certain criteria.
- Funding for energy produced from renewable sources like solar panels, geothermal heat pumps, and energy storage systems. Receive 1.5 cents per kWh produced plus 10% for meeting certain criteria.
- Tax credits or direct payment for the purchase of clean light- and heavy-duty electric vehicles (including buses). Depending on type of vehicle and weight, receive up to 30% of the price or incremental cost for a comparable vehicle, whichever is less.
- Tax credit for alternative fuel refueling property, including charging stations for electric school buses. (Low income and rural schools may be able to receive direct pay.)
- Reduce energy-saving project costs by passing on deductions – equal to $.50 to $5 a square foot – to eligible contractors and other entities who agree to reduce fees by the amount of the deductions. Use this for interior lighting design; heating, cooling, ventilation, and hot water systems; and building envelop design or retrofit that increase energy efficiency by 25%.
- Access no- or low-interest loans to deploy low- and zero-emission technologies via the Greenhouse Gas Reduction Fund.
- Competitive grants can help replace eligible vehicles with zero-emission vehicles, including electric school buses; monitor and reduce greenhouse gas emissions and other pollutants at schools in low-income and disadvantaged communities; invest in community-led projects in disadvantaged communities to address disproportionate environmental and public health harms from pollution and climate change; support neighborhood equity, safety, and affordable transportation access.
- Partner with eligible recipients to receive funds to increase the number of trees on school property.
For complete details, download the “K12 Education and Climate Provisions in the Inflation Reduction Act Guide” created by the Aspen Institute’s “This Is Planet Ed” and the World Resources Institute’s “Electric School Bus Initiative”. (Natalia Akopian, Michelle Faggert, and Laura Schifter. (2022). “K12 Education and Climate Provisions in the Inflation Reduction Act” The Aspen Institute: Washington, DC. https://www.thisisplaneted.org/blog/ school-climate-provisions-in-the-inflation-reduction-act.)
The IRA is just one source of green funding for schools – there are others.
- For funding opportunities available through the Infrastructure Investment and Jobs Act, download this guide by the K12 Climate Action and World Resources Institute.
- The White House also recently issued the Open and Upcoming Infrastructure Funding Opportunities.
For an overview of how to develop a green plan for your district, refer to this seven-step guide from The Henchinger Report. (Kamenetz, Anya. “There’s a lot of new money for greening education. This is how schools could use it.” December 20, 2022. The Henchinger Report.)
While you focus on taking advantage of this billion-dollar opportunity (literally), please know that RBT CPAs is here to take care of your accounting, tax, and audit needs. We’ve been serving clients in the Hudson Valley and beyond for over 50 years. Give us a call.