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IRS Clean Energy Tax Credits
Internal Revenue Service (IRS)
IRS Clean Energy Tax Credits offer refundable tax incentives for clean energy investments, allowing eligible entities to receive the full credit value as a refund.
Businesses and tax-exempt organizations, including schools, can claim the Investment Tax Credit (Sec 48) for ground-source heat pump (aka geothermal heat pump) projects. Schools can receive a cash reimbursement for up to 50% of project costs if their ground-source heat pump projects meet prevailing wage and apprenticeship, use domestic content, and site projects in “energy communities”. This tax credit is available for ground-source heat pump projects that commence construction by Dec 31, 2034. This tax credit is non-competitive, there are no caps on funding, and schools receive the value of the tax credit in the form of a cash reimbursement through Elective Pay.