After a long wait, a once-in-a-generation opportunity to modernize America’s aging school buildings is starting to deliver. Over the past few weeks, the first checks from a Biden-era federal program to promote clean energy landed in the mailboxes of school districts across the country, reimbursing them for infrastructure upgrades like energy-efficient, ground-source heat-pump HVAC systems and energy storage.
These funds are supporting much-needed improvements to school buildings so that students can learn in comfortable, safe, and cost-effective environments. Many more school districts are eager to claim the next wave of payments. The federal program, established under the 2022 Inflation Reduction Act, allows districts (and other organizations) to apply for clean-energy tax credits, even though they don’t pay taxes. The credits translate into money to pay for eligible improvements.
While the new Trump administration brings uncertainty about the future of federal support for school infrastructure, we urge district leaders to continue to evaluate how these funds could underwrite their projects. We also urge them to shape their own destiny with proactive outreach to their congressional representatives expressing support for preserving what is known as elective pay or direct pay and the underlying energy tax credits.
One thing no one should be uncertain about is the necessity of modernizing our schools. Nearly 40 percent of main instructional buildings in the United States were constructed before 1970, and many campuses can’t meet today’s challenges.
As former educators, we know firsthand how poor school infrastructure directly affects students. We’ve experienced classrooms without cooling during unbearable heat. Hot classrooms inhibit learning and contribute to health issues, especially for the youngest children. About 5 percent of the gap in PSAT test scores between Black and Hispanic students and their white peers can be attributed to disproportionate exposure to heat, including in classrooms. Modern heat-pump technologies have the benefit of providing heating, cooling, and filtration to ensure healthy, comfortable indoor air.
Beyond affecting learning conditions, aging school infrastructure strains already tight district budgets. Energy bills for K-12 schools typically make up the second-largest budget item after teacher salaries. Schools equipped with efficient, electric HVAC systems use up to 80 percent less energy than those relying on legacy equipment, leading to significant annual savings. The Sun Prairie Area school district in Wisconsin estimates that it saved $1.9 million in energy costs last year and $15 million over the past 16 years from energy-efficiency measures, including ground-source heat pumps. The savings have been channeled into other areas such as student technology and teacher salaries.
Aging school infrastructure strains already tight school district budgets.
Every single political leader represents a school district that can benefit from the savings that clean-energy tax credits unlock. The new technologies also improve comfort and safety by replacing old, unreliable equipment with upgraded technology. President Donald Trump and Republicans in Congress have signaled a desire to roll back at least some of the clean-energy tax credits in the Inflation Reduction Act. Such a move might keep thousands of school districts stuck with legacy infrastructure just as many are beginning the momentous task of upgrading their buildings. Installing these clean-energy technologies also ensures that schools are part of the solution to both the pollution and the climate disruption caused by fossil fuels.
Success stories of districts using elective-pay tax credits are all around us. The Greenbrier, W.Va., school system recently installed geothermal systems at its middle and elementary schools. Combined with a solar array, the new heating and cooling solution consumes significantly less energy and makes the facilities some of the most energy efficient in the state and the country. This investment in modern technology is expected to generate a $2 million federal reimbursement through elective pay. And the district is expected to save about $559,000 annually as a result of the project.
The Lansing, Mich., district has also taken bold steps toward a clean-energy future. Supported by federal incentives, the district is installing a ground-source heat pump at Willow Elementary along with other clean-energy technologies. Similarly in Kentucky, the Pulaski County schools recently installed geothermal heat pumps and have already filed for federal tax credits to recoup installation costs. The Boston public schools, where one of us (Brenda) was superintendent, is pursuing elective pay for 20 electric school buses, and plans are underway to seek credits for a recently installed vehicle-charging station, additional buses, and planned heat-pump installations.
To help more districts seize this opportunity, UndauntedK12, Lawyers for Good Government, and the World Resources Institute have put together resources to help districts understand elective pay for schools, navigate the federal reimbursement process, and understand the credits for electric vehicles and charging. The key step for busy superintendents to get started is to ask their facilities and finance leaders to explore how their district can leverage the elective-pay program. State leaders can also play an important role in supporting districts with elective pay.
No school modernization or new construction project should be undertaken without consideration of these new incentives. District leaders—whether or not they have an active project right now—can contact their elected representatives to voice their desire to preserve this federal funding opportunity that is just now within our reach.
Every child deserves to learn in a safe, comfortable environment. Every school district needs to manage its funds efficiently so that every dollar saved is a dollar invested in our classrooms. The recent movement to install ground-source heat pumps, use renewable energy, and shift to electric buses shows that more schools are working toward those ends while also benefiting the planet.
