28  |  SCHOOL PLANT MANAGER MAGAZINE  |  FALL 2026
M
issouri school districts 
are discovering that the 
combination of geothermal 
HVAC and the Inflation 
Reduction Act’s Direct Pay 
(Elective Pay) is no longer a niche 
strategy. It is becoming one of the most 
practical ways to tackle aging facilities, 
rising utility costs, and decarbonization 
goals without overburdening local 
taxpayers. Three recent Missouri 
projects, in Springfield, Branson, and 
Tarkio show how districts can translate 
federal incentives into tangible checks, 
lower operating costs, and better 
learning environments.
Why IRA Direct Pay  
Matters for Schools
The IRA Direct Pay provision allows 
tax‑exempt entities, including K–12 
districts, to receive clean energy tax 
credits as cash reimbursements from 
the U.S. Treasury. For geothermal 
and solar projects installed before 
Turning Tax Credits into Classrooms:  
How Missouri Schools are Cashing in on IRA Direct Pay
By Sage Acorn, Veregy
2033, eligible schools can typically 
receive 30 percent of qualified project 
costs, with potential to reach 50 
percent when prevailing wage and 
other requirements are met. Unlike 
traditional tax credits, districts do not 
need federal tax liability to benefit, 
which means federal dollars can 
directly support local capital plans and 
performance contracts.
byrneandjones.com
Your One-Stop 
Partner for Outdoor 
School Facilities
Design. Build. Play.
(314) 254-9766

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