Energy Tax Credits for Schools Hub
Through Elective Pay, school districts can access federal energy tax credits to defray the cost of highly-efficient, modern energy technologies. These upgrades can help districts reduce operating costs and create safer, more resilient facilities.
The Energy Tax Credits for Schools Hub provides up-to-date information and resources to help district leaders learn about these tax credits, understand recent changes, and make the most of this opportunity.
Updates to Energy Tax Credits for Schools
On July 4, the President signed the July 2025 federal budget reconciliation law, which makes significant changes to some—but not all—of the energy tax credits available to schools through Elective Pay. Understand how the changes impact clean energy projects at schools.
Ground-Source Heat Pumps: Full Speed Ahead
School districts can receive reimbursement through energy tax credits for up to 50% of the cost of a ground-source heat pump system. Understand the opportunity and plan ahead to maximize savings.
Electric Transportation: Take Advantage Now
School districts can receive up to $40,000 for electric vehicles and $100,000 for EV charging equipment through energy tax credits - but the timelines to do so have been dramatically shortened. Learn about these tax credits and their changes to take advantage before they’re gone.
Solar & Storage:
A New and Challenging Landscape
School districts can claim energy tax credits for solar energy, energy storage, and thermal storage projects. However, the new law shortened the timeline and placed new restrictions. Learn about these tax credits and understand the new timelines and rules.
Elective Pay in Action
School districts have received reimbursements through Elective Pay for modernization projects that qualify for energy tax credits. Many school district leaders have defended the tax credits in the face of federal policy changes. Explore the Schools and Elective Pay project database, watch videos, read case studies, and learn more about the schools and leaders driving this work.
Questions? Reach out to us at info@undauntedk12.org.
The information on this page represents our best understanding of certain tax provisions for general informational purposes only and is not itself tax guidance. Please consult qualified tax professionals about your specific circumstances and refer to guidance issued by the IRS for detailed information on the rules associated with energy tax credits, elective pay, and other relevant tax provisions.