Federal Funding Opportunities

Use these resources to access the federal funding provided in the Inflation Reduction Act (IRA) and the Infrastructure Investment and Jobs Act (IIJA)

The Inflation Reduction Act, passed in 2022, included a historic $369 billion investment in climate and energy provisions, signifying the largest climate investment in US history. These investments can support the K-12 education sector in adopting clean energy and supporting more healthy and sustainable learning environments. 

Additionally, the Infrastructure Investment and Jobs Act provided billions of dollars that can be used to help schools address climate change. 

Overview of the K-12 school opportunities in the IRA and IIJA

  • Schools and the Inflation Reduction Act: UndauntedK-12 has worked with organizational partners to curate resources to help leaders in the education space navigate this generational funding opportunity to protect student health and learning, enhance resilience, reduce spending on infrastructure, and decrease emissions all while addressing equity and environmental justice. Learn more →
  • K12 Education and Climate Provisions in The Inflation Reduction Act: This resource, created by The Aspen Institute’s This Is Planet Ed and the World Resources Institute’s Electric School Bus Initiative outlines the potential opportunities in the Inflation Reduction Act to support schools, including information about tax credits, potential financing mechanisms, and grants. A short description, lead agency and eligible beneficiaries, and potential benefits are outlined for each provision. Access the resource →
  • Education and Climate Provisions in the Infrastructure Investment and Jobs Act: From The Aspen Institute’s This Is Planet Ed and the World Resources Institute’s Electric School Bus Initiative, this resource provides details on the many provisions in the IIJA which school districts can use to create healthier and more sustainable learning environments. Access the resource →
  • Public and Nonprofit Sector Buildings Provisions in the Inflation Reduction Act and Infrastructure Investment and Jobs Act: A resource from the US Green Building Council explains how tax incentives can facilitate climate investments in public and nonprofit buildings. The resource even includes a sample school project that can be implemented using the tax investments, grants, and financing initiatives from the IRA and IIJA. Read more →

Direct Pay and Funding Resources

The IRA extended access to tax credits for investment in clean energy technologies for tax-exempt entities, including K-12 public schools, in the form of 'direct pay'. These tax credits allow schools to recoup up to 70% of the project's cost as a tax free cash payment from the IRS. 
  • Fact Sheet: Inflation Reduction Act Tax Credits Can Fund School Facilities Upgrades and Reduce School District Energy Bills: The U.S. Department of Treasury provides K-12 school-specific guidance on accessing the federal funding opportunities for clean energy technologies through Direct Pay. Read more →
  • Making Clean Energy Tax Credits Deliver for the Public: A User Guide for Governments, Schools, and Nonprofits: From the Blue Green Alliance, this resource details how tax exempt entities, such as public schools, can access clean energy tax credits. Read more →
  • IRS Guidance on Clean Energy Tax Credits for State and Local Government Entities: This guidance, directly from the IRS (the lead government agency for tax credits), answers questions about eligibility, the process for claiming and receiving payment, applicable credits and bonuses, and implementation updates. Read more →
  • Direct Pay through the Inflation Reduction Act: The White House published guidance on what direct pay covers, who is eligible, frequently asked questions, and a sample timeline for claiming direct pay for most organizations with a calendar tax year. Read more →
  • Building Jobs & Sustainable Public Energy In Local Communities: The Congressional Progressive Caucus Center published a series of resources and tools to support tax-exempt entities in accessing the clean energy tax investments from the IRA. Read more →
  • Inflation Reduction Act Tracker: This tracker, from the Environmental Defense Fund, Columbia Law School, and Sabin Center for Climate Change Law, records steps taken by federal agencies to implement the climate change-related provisions of the IRA. Agency actions are listed in order of date (from newest to oldest) and can be filtered by IRA section, agency, eligible entity, and type of action (explanation). Read more →

Technology Specific Resources

  • Geothermal Tax Credit Guide: The IRA also extended and enhanced the federal tax credits and incentives available for the installation of a geothermal heat pump (GHP). This guide, from ClimateMaster, is designed to provide a detailed review of the new tax and depreciation incentives available under the IRA. Read more →
  • Inflation Reduction Act: Solar Energy and Energy Storage Provisions: From the Solar Energy Industries Association (SEIA), this resource provides a quick overview of the key provisions in the IRA, including solar energy and energy storage technologies.  Read more →

Last Updated: 8/11/2023

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