Making the Most of Energy Tax Credits:
Unlocking Federal Investment in Your School
On July 4, the President signed the July 2025 federal budget reconciliation law which makes significant changes to energy tax credits. This resource, which includes information about these energy tax credits, has not been updated since the passage of this law.
If you are interested in solar energy, energy storage, thermal storage, clean commercial vehicles, and/or EV charging equipment projects and are not aware of these changes, please review the details on this page before using this resource. If you are interested in ground-source heat pump projects, the information in this resource remains relevant.
Elective Pay unlocks new uncapped, noncompetitive funding for efficient, healthy, and resilient school infrastructure.
We're thrilled to introduce a new blueprint to support school leaders to make the most of Elective Pay and energy tax credits.
In November, the IRS began sending the first round of Elective Payments to districts that have filed for energy tax credits. Districts across the country seek to follow in their footsteps over the next decade.
This blueprint serves as a practical guide to help school leaders understand and leverage federal tax credits through Elective Pay to fund clean energy and modernization projects. It outlines the benefits of clean energy, key concepts for implementation, and strategies for getting started at the district level.
Part A reviews the benefits of clean energy to schools and overviews how energy tax credits and Elective Pay can make them affordable.
Part B outlines the key concepts and provisions that school administrators pursuing an eligible clean energy project should know.
Part C offers leaders tips on how to lead their district in getting started on and making the most of this opportunity.
