Walker Blue partnered with a Michigan school district to certify and maximize the Investment Tax Credit (ITC) for a solar energy project at a middle school. This initiative demonstrates how public institutions can leverage federal incentives under the Inflation Reduction Act to reduce energy costs, promote environmental stewardship, and enhance educational opportunities in STEM fields. The middle school’s ITC-eligible costs totaled $3.5 million, yielding a tax credit of $1.4 million, which translates into a cash payout through Direct Pay under the IRA.
The middle school serves grades 6-8 and acts as a community hub with classrooms, labs, a gymnasium, and athletic fields. Facing high energy demands from year-round operations, the district installed a 540 kW AC roof-mounted photovoltaic (PV) system alongside necessary roofing upgrades. The project, completed in conjunction with a roof replacement, integrates seamlessly with the existing infrastructure to offset a significant portion of the school’s annual electricity use.
Overview
- Construction Start: December 29, 2023
- Placed in Service: June 12, 2025
- Total Project Cost: $5,108,961
- ITC-Eligible Cost Basis: $3,501,317
ITC Certification and Adders
Walker Blue conducted a thorough analysis to substantiate ITC eligibility under IRC Section 48. Key findings include:
- Base ITC Rate: 30% for qualifying energy property.
- Domestic Content Adder: 10% bonus, verified through a detailed cost-trace methodology showing over 40% domestic content in manufactured products (exceeding the 2024 threshold).
- Total ITC Rate: 40%, yielding a tax credit of $1,400,527.
- Other Adders: The project did not qualify for the Energy Community or Low-Income Communities adders, as the site is not in a designated area.
The system’s capacity, under 1 MW AC, automatically qualified for Prevailing Wage and Apprenticeship (PWA) compliance, simplifying the process and ensuring access to the full base credit.
Our methodology involved reviewing invoices, contracts, and supplier data to allocate costs accurately. Partial eligibility was applied to roofing and consultant fees, ensuring only solar-supporting elements were claimed.
| Work Activity | ITC Eligibility | Total Cost | ITC Eligible Cost |
| Solar Design & Material | Full | $1,955,289 | $1,955,289 |
| Solar Installation | Full | $585,880 | $585,880 |
| Roofing Replacement | Partial | $2,286,213 | $816,194 |
| Roofing Design Consultant | Partial | $93,686 | $33,447 |
| Roofing Administration Consultant | Partial | $55,620 | $19,857 |
| Owner’s Consultant Fee | Partial | $132,273 | $90,650 |
| Total | $5,108,961 | $3,501,317 |
Benefits & Impact
This project not only reduces operational costs but also serves as a teaching tool for sustainability. By offsetting energy use, the school district demonstrates leadership in green initiatives, inspiring students and the community. Walker Blue’s certification ensured compliance and maximized incentives, providing a model for other educational institutions pursuing renewable energy.
