Superintendent Brad Berzinski recently shared with the school board that the district has received a check for $5.5 million, the culmination of two years of work to apply for a federal tax credit available to entities that meet certain criteria for energy efficiency projects.
“I am grateful,” school board chair Nancy Denzer said. “I am excited about what this means and appreciative of all the people who spent so much time on this.”
The tax credits were made possible through the Inflation Reduction Act of 2022 and preserved by the current presidential administration in the summer of 2025. WAPS applied for the credit in December of 2025. The elective pay portion of the law allows tax-exempt and government entities, like school districts, to receive the equivalent amount of the tax credit directly from the federal government.
There is no restriction from the federal government or the Minnesota Department of Education on how the funds can be spent. However, the district plans to use the additional funds on one-time purchases instead of applying them to recurring expenses. These one-time expenses could include capital projects such as building enhancements or upgrades to classroom equipment.
“The geothermal systems have made significant and positive improvements to the learning environment at Jefferson and W-K,” Berzinski said. “We were always hopeful that the projects would qualify for the tax credit, but we never counted on it. Now that the funding is secured, it opens up a world of possibilities for strategic, one-time capital investments that will benefit our students and staff for years to come.”
School board vice chair Karl Sonneman put in extra time pursuing these tax credits. Despite initial skepticism from others, Sonneman read through the bill, considered ways that it could apply to the geothermal projects at W-K and Jefferson, then connected with advocates and other elected officials to put a plan together.
Sonneman even traveled to Washington, D.C., as part of a trip organized and paid for by UndauntedK12, a national nonprofit that helps public schools access federal tax credits for qualifying clean energy projects. Sonneman met with staff members from the offices of Sen. Tina Smith, Sen. Amy Klobuchar and Rep. Brad Findstad to advocate for entities like WAPS to be able to access these tax credits.
The $5.5 million tax payout is one of the largest received by a school district in the nation, according to information compiled by UndauntedK12. WAPS is also one of the first districts in Minnesota to receive the credit specifically for a geothermal unit.
The systems have been fully operational in Jefferson and W-K for the last two school years and have handled the dramatic swings in Minnesota weather. In addition to improved air quality, the buildings received other upgrades as well, including improved lighting, new ceiling tiles in classrooms and plumbing fixes. There are plans to offer summer programs in both buildings, something that was never considered previously due to the lack of climate control.
“We have two buildings that have some very good quality air and a healthy place for our students and staff to learn every day,” Denzer said. “The work putting this into our buildings can never be overstated enough. We’re now seeing the results.”
