The Inflation Reduction Act of 2022 (IRA) included significant enhancements to numerous clean energy tax credits, including Section 48 & 48E Energy Investment Tax Credits (ITC). These tax credits are based on a percentage of the eligible cost basis of solar panel systems and other eligible energy property, including geothermal wells and ground sourced heat pumps. Other clean energy tax credits that are common for school districts include Section 45W, which is a tax credit for investments in electric vehicles such as school buses and Section 30C, which is a tax credit for investments in EV Charging Stations.
KBKG has been a leader in Cost Segregation and Green Energy Incentives since 1999; This expertise ensures credits are maximized, helping put more dollars back in your classrooms.
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How do Schools Claim a Tax Credit?
These credits can be claimed by government entities via elective pay,
commonly referred to as direct pay, and are typically worth 30% of eligible costs.
Direct pay is an election an entity makes that allows tax credits to be treated as a tax payment. For entities like school districts,
who do not pay taxes, the credits are treated as an overpayment of tax resulting in a refund.
Eligible Projects
How Does KBKG Help?
KBKG’s experts are versed in the required procedures that eligible
entities need to take in order to receive direct payments.
Our team
of experts will:
- Identify qualifying projects and/or activities
- Provide pre-filing registration consulting
- Complete the cost segregation study to maximize and validate the eligible cost basis of projects.
- Prevailing wage & apprenticeship consulting & verification to preserve the 5x bonus
- Qualify and verify project eligibility for bonus tax credits
- Tax Reporting, prepare draft forms for submission to IRS.
