Energy tax credits for schools: What’s still available?

Changes to federal energy tax credits have raised questions about which opportunities remain available to school districts. Districts still have a clear path to claiming the tax credit for modernizing HVAC systems with ground-source heat pumps, while solar, energy storage, and EV charging projects seeking tax credits face tighter deadlines and more complex rules.

Here’s what’s important to know:

School districts continue to receive reimbursement checks from the IRS for qualifying clean energy upgrades through Elective Pay. Because these payments are mandatory federal spending, the IRS is required to issue reimbursements for eligible projects.

Pulaski County Schools in Kentucky receives a $1,838,267 check!

Hart County School District in Kentucky receives a $793,079 check!

Maize Unified School District 266 in Kansas receives a $104,585 check!

Branson Public Schools in Missouri receives two checks for $4M!

Springfield Public Schools in Missouri receives a $4,129,879 check!

The tax credit for ground-source heat pumps remains intact and can cover up to 50% of project costs. The tax credit is available for projects that start by December 31, 2034.

The tax credit for electric vehicle (EV) charging equipment is available for equipment placed into service by June 30, 2026. Chargers installed at qualifying locations are eligible for 6-30% of costs, up to $100,000 per charger.

Solar, energy storage, and thermal storage projects seeking tax credits are subject to tighter timelines and complex new rules. On February 12, 2026, the IRS released Notice 2026-15, providing interim guidance on certain Prohibited Foreign Entity (PFE) rules that affect these projects. Review this page for updates and more information.

Explore these additional resources to better understand the pathways to leverage available tax credits:

• Energy Tax Credits for Schools Hub (UndauntedK12)

• Elective Pay Process Webpage (UndauntedK12)

• School Decarbonization Financing and Funding Cheat Sheet(Building Power Resource Center)

• Energy Tax Credits for Schools: What Education Leaders Need to Know (National Center for School Infrastructure)

• Ground-Source Heat Pumps: A Healthy and Affordable HVAC Choice for K-12 Schools(National Center for School Infrastructure)

• Performance Contracting: A Partnership to Improve Facilities and Unlock Funding Opportunities(National Center for School Infrastructure)