How Schools Use Clean Energy Tax Credits
The Inflation Reduction Act of 2022 enabled tax-exempt entities (such as schools, local governments, and nonprofits) to access clean energy tax credits using a process called Elective Pay. Schools have been able to file for tax credits and receive millions of dollars in cash reimbursements for clean energy projects (including solar energy, ground source heat pumps, electric school buses, and EV chargers). These tax credits that make clean energy affordable to schools and help reduce burdensome electricity bills are now under threat.
Why Clean Energy Matters for Schools
- Significant Cost Savings: Energy is typically the second largest expense for schools. By investing in clean energy, schools can save millions of dollars on energy costs that can be reinvested into students.
- Energy Independence: Investments in solar panels and battery storage systems enable schools to generate their own electricity, reducing reliance on external power sources and keeping the lights on during outages.
- Environmental and Health Benefits: Transitioning to clean energy reduces greenhouse gas emissions and air pollutants, creating a healthier environment for students and staff.
- Educational Opportunities: Clean energy projects serve as hands-on learning tools, allowing students to engage with real-world applications of science, technology, engineering, and mathematics (STEM) .
How You Can Help: Urge your legislators to keep clean energy tax credits for schools. Your voice is crucial in keeping these benefits. The school clean energy tax credits are not just cost savings; they’re investments in our children’s education, health, and the planet’s well-being.