Federal Funding
American Rescue Plan
Local government entities, including schools, libraries and other municipal buildings, are eligible to use over $350 billion in aid being made available through the American Rescue Plan. Under the terms of the law, the funds can be used in several ways, including assessing HVAC systems, testing those systems, and, if necessary, repairing and replacing these assets. The Department of the Treasury has provided an overview of this funding package and an explanation of exactly how the funds can be used to improve HVAC systems.
In addition to these funds, there are $122 billion in American Rescue Plan funds available through the Elementary and Secondary Schools Emergency Relief (ESSER) Fund. Available through September 2024, you can learn more about how these funds can be used towards projects designed to improve indoor air quality within schools.
In addition, non-public (private schools) can apply for American Rescue Plan and The Coronavirus Response and Relief Supplemental Appropriations (CRRSA) Act funds through the Emergency Assistance to Non-Public Schools (EANS) program. These funds are allotted to each respective state’s governor for release to individual schools.
There are also funding opportunities through the Coronavirus State and Local Fiscal Recovery Funds — these funding opportunities can be leveraged for public building retrofit programs.
Actionable Opportunities:
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Apply for Humanities Challenge Grants
Aimed at non-profit facilities such as museums, libraries, colleges, etc.
Bipartisan Infrastructure Law
The Bipartisan Infrastructure Law provides billions of dollars to different types of buildings, both private and public. These include public sector structures such as transportation facilities, public schools, non-profits, airport terminals and federal buildings. Residential and commercial buildings are also eligible for benefits designed to improve buildings’ energy efficiency, ventilation, and indoor air quality. There are various programs available for several public-sector entities, whether local, state, tribal or federal level agencies. The White House has made a comprehensive guidebook available for all interested stakeholders to understand the benefits of the infrastructure law.
Actionable Opportunities:
Inflation Reduction Act
On August 16, 2022, President Joe Biden signed the Inflation Reduction Act of 2022. The Inflation Reduction Act represents the largest energy efficiency legislative package in history, with over $369 billion of incentives to promote new technologies. There are many energy efficiency-focused tax incentives and grants in the Inflation Reduction Act that could benefit contractors and customers.
Tax Deductions:
- 179D: Temporarily expanding the 179D permanent deduction for ten years, lifting the lifetime limit for a three-year cap, including tax-exempt entities. Providing an increased base deduction when meeting prevailing wage and registered apprenticeship standards.
- 25C: Extending the 25C tax credit for ten years, eliminating the lifetime cap, and expanding the value of the credit to 30% up to at least $1,200 without limitation on energy property.
- 45L: Extending the 45L credit for ten years for single-family and manufactured homes.
Federal Rebate and Grant Programs:
- Grants to reduce emissions from industrial manufacturing processes, including almost $6 billion for the largest industrial emitters like chemical, steel and cement plants.
- Grants to Reduce Air Pollution at Ports, funded at $3 billion, support the purchase and installation of zero-emission equipment and technology at ports.
- Critical Facility Modernization: Grants to states designed to provide improved energy efficiency and increase the resiliency of essential public buildings, including schools, libraries, museums and many other local and state building facilities.
- GSA Energy Efficiency: Support for purchasing high-efficiency technology, efficiency-related goods and energy efficiency upgrade contracting services.
Other Federal Funding Sources
SBA 504 loans (Applicable for Private Schools)
Private schools can leverage SBA 504 loans to aid in addressing cost pressures they may face when it comes to renovations. These loans offer up to $5 million in funding for eligible projects. The criteria for such a project are as follows:
- Construction and purchase of:
- Existing buildings or land
- New facilities
- Long-term machinery and equipment
- Improvement or modernization of:
- Land, streets, utilities, parking lots and landscaping
- Existing facilities
With these criteria in mind, private schools can leverage these funds for funding construction/renovations of:
- School buildings
- Infrastructure (HVAC, parking lots, playgrounds, etc.)
How To Apply:
- 504 loans are available exclusively through Certified Development Companies (CDCs). The Small Business Administration (SBA) has provided a locator for CDCs throughout the United States.
- Begin preparing your application package. The SBA has resources that can assist applicants to identify applicable resources and, finally, prepare their 504-application package.
Actionable Opportunities:
Find an HVAC Professional
It takes a highly trained HVAC professional to conduct a ventilation verification, test and balance an HVAC system, or repair and replace it. If you care about the air you and your tenants breathe, your search for cleaner air starts here.