Two years of progress: celebrating the Inflation Reduction Act’s impact on schools
Two years ago, the Biden-Harris Administration signed the Inflation Reduction Act into law, the most significant investment in clean energy and climate justice in our nation’s history. Since then, schools across the country from West Virginia to Wisconsin and Washington have gotten the memo: Thanks to the Inflation Reduction Act, clean energy is increasingly irresistible. And with clean energy comes the opportunity for our schools to be healthier, more resilient, and more efficient to operate.
The Inflation Reduction Act’s main attraction are clean energy tax credits – newly accessible to schools and other non-taxable entities as a cash reimbursement through Elective Pay. For the past two years, we’ve talked with school districts, connected with architects and engineers, scoured school committee meeting material and read local press – all with an eye to understanding how this new opportunity is unfolding.
The results of this work are now available and the first resource we have for tracking the Inflation Reduction Act’s investments in our schools. The first 100 districts are already on their way to harnessing the benefits of clean energy and leveraging Elective Pay to make it affordable.
Meet some of the first IRA district champions below:
Menasha Joint School District (WI) Menasha Joint School District is leveraging Elective Pay to reduce the price tag on a new net-zero intermediate/middle school. While the project always planned to include a ground-source heat pump system, solar panels and energy storage were added once the opportunity to capture valuable tax credits became clear. The district is working with SMART Local 18 on the heat pump portion of the project and will meet the Prevailing Wage and Apprenticeship provisions of the IRA. The district anticipates receiving over $2 million in tax credits.
Seattle Public School District (WA) Seattle Public Schools is making impressive strides towards its goal to be fossil-free by 2040 by capitalizing on “game changing” IRA Elective Pay opportunities. With 19 school buildings already utilizing geothermal wells for heating and cooling—and more planned—the district is advancing sustainable energy practices in all new construction projects. This district is also deeply committed to supporting their local economy by adhering to Prevailing Wage and Apprenticeship provisions for their recent ground-source heat pumps and solar panel installations. Seattle Public Schools is anticipating $7.5 million in IRA tax credits.
Yolo County Office of Education (CA) In Yolo County, California, the County Office of Education is set to break ground this September to install a solar-powered microgrid. The district, which has long prioritized sustainability goals, saw the opportunities provided by the Inflation Reduction Act as a chance to develop plans that will improve their facilities, reduce their environmental impact, and boost community resilience. The plans feature an EV charging station, solar arrays at two locations, and an energy storage system at one location coupled with numerous energy efficiency measures. Once complete in 2026, these systems will allow the county administration building to remain operational during Public Safety Power Shutoffs, and will provide energy cost savings to be reinvested into school communities.
Loudoun County Public Schools (VA) is taking full advantage of IRA opportunities to continue their long history of prioritizing energy conservation and efficiency. The district exemplifies the importance of collaboration with partners to understand the IRA, and strategic planning to maximize tax credits. The district recently completed electric vehicle and solar projects, with ground-source heat pumps under construction and more clean energy projects on the horizon. The district is expecting $2 million dollars in tax credits for this fiscal year. By applying this year’s insights, the district expects another $7-$8 million in tax credits in the next two fiscal years.
