TL/DR –
The federal government is offering support to schools and nonprofits for investments in cleaner and more energy-efficient technologies. The IRS will provide direct support payments to partially fund energy renovations that reduce energy use and replace fossil fuels. Highlighted as a significant opportunity, the new tax breaks promise to offset utility costs, one of the biggest burdens on school budgets, freeing up resources for other important areas.
Federal Tax Breaks Support Green Investment in Schools and Nonprofits
The federal government is providing tax breaks for families, businesses, and now schools and nonprofits that invest in energy-efficient technology. This is a first-time initiative where “direct support” payments from the Internal Revenue Service (IRS) will compensate school districts and nonprofits for part of their expenses on energy overhauls.
Green Investment Aids School Districts Facing Budget Cuts
According to Nathan Ugoretz, secretary-treasurer of the Wisconsin Education Association Council, this program is a boon for schools struggling to fund energy upgrades due to budget cuts. The IRS support will help them overhaul outdated electrical systems and cut energy costs.
Case Study: Forest Edge Elementary School
Forest Edge Elementary School in Fitchburg, Wisconsin, stands as an example of successful energy efficiency. After just one year of operation, it was recognized as the first Net Zero Energy school in Wisconsin, producing as much energy as it consumed. This was highlighted at an event held by the BlueGreen Alliance, an advocacy group promoting labor and environmental interests.
Benefits Beyond Taxpayers
During the event, it was emphasized that the clean energy and energy efficiency tax credits under the 2022 Inflation Reduction Act aren’t limited to taxpayers. These credits can pass on to nonprofits, helping to spread green technology. Kristina Costa, deputy assistant to President Joe Biden for clean energy innovation and implementation, noted how this could help reduce school’s utility costs and free up resources for student’s needs.
Wisconsin’s Clean Power Investments
Spurred by the Inflation Reduction Act, businesses have invested $1.7 billion on clean power projects in Wisconsin according to the White House. Rep. Mark Pocan (D-Town of Vermont) lauded this as a win for education, job development, and the environment.
Net-Zero Energy Schools: Future Possibility?
Forest Edge school was an example of a net-zero energy school even before the Inflation Reduction Act. If the Act’s direct support program had been available during its construction, the savings could have been several million dollars, according to Andy Weiland, Oregon School District business manager.
Additional Benefits of the Act
Besides energy system upgrade incentives, the Act also stipulates contractors to pay prevailing local wages and employ participants in licensed apprenticeship programs for projects qualifying for full tax credits. Emily Pritzkow, executive director of the Wisconsin Building Trades Council, praised this for aiding local economies and construction workforce stability.
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