Direct payment opportunity for projects of tax-exempt entities

Public school administrators and board of education members across the country face tough decisions when it comes to addressing how to pay for the repair or replacement of aging equipment, vehicles and infrastructure.

The direct-pay provision in the Inflation Reduction Act enables schools and other tax-exempt groups to receive certain clean energy and climate-related tax credits as direct cash refunds from the Internal Revenue System.

Entities can receive up to 30% of a clean energy project’s cost, with the possibility of additional credits closer to a 50% reimbursement. Bonuses are applied ba...