Federal Funding for Churches and Nonprofits
Churches and nonprofit entities across the United States are being presented with an unprecedented opportunity to embrace energy efficiency, courtesy of billions of dollars available in tax credits and grants from the U.S. government. These funds primarily stem from legislative actions such as the 2022 Inflation Reduction Act (IRA), bolstered by allocations from the 2021 Bipartisan Infrastructure Law and the 2022 CHIPS and Science Act.
Previously, tax credits were predominantly accessible to commercial entities and tax-paying corporations. However, with the passage of the IRA, tax-exempt organizations, including churches and nonprofits, can now benefit by receiving payments equivalent to the full value of clean energy tax credits, even if they do not have tax liabilities.
Funding Opportunities
Guided by faith-based values and a commitment to environmental stewardship, federal officials are actively promoting these funding opportunities. Secretary of Energy Jennifer Granholm, emphasizing the scriptural teachings of caring for the world and one’s neighbors, highlighted the pivotal role faith-based communities play in shaping a clean energy future. She outlined the Biden administration’s commitment, offering an array of tools to support congregations in reducing carbon footprints and becoming climate leaders within their communities.
The Office of State and Community Energy Programs (SCEP) within the Department of Energy is at the forefront of facilitating these initiatives. Managing approximately $16 billion in grants, rebates, and technical assistance, this office collaborates with state, local, tribal governments, and community organizations to streamline access to funding for energy-efficient projects.
Nonprofits, including religious institutions, stand to gain significantly from these opportunities. By investing in eligible clean energy solutions like solar, battery storage, and EV chargers, organizations spending $600,000 could qualify for a $200,000 cash payment from the IRS, as per SCEP guidelines.
Beyond investment tax credits, various other incentives such as production tax credits and bonus credits are available. To explore the comprehensive list of credits and details, interested parties can refer to IRS.gov/ElectivePay.
Department Of Energy Programs
Renew America initiative
Numerous Department of Energy programs, including the "Renew America" initiative and the Inclusive Energy Innovation Prize, aim to foster collaboration and innovation within historically underserved communities. The "Renew America" program invites nonprofits to serve as prime recipients, leading multiple energy efficiency projects while providing technical and project management support.
Moreover, programs like the Clean Energy Coalition Prize and the Buildings Upgrade Prize incentivize community coalitions and building upgrades, respectively, with the aim of enhancing energy efficiency and addressing local clean energy opportunities.
Secretary Granholm emphasized the need for faith organizations not only to enhance their own energy efficiency but also to extend support to congregants in reducing household energy costs. Collaboration among local governments, churches, and nonprofits is key in utilizing these federal resources effectively.
As faith communities organize to benefit from these federal programs, there's a moral obligation to reduce carbon footprints and promote climate justice. Collaboration and collective action are crucial to addressing the climate crisis equitably and benefitting marginalized communities.
The federal government's support serves as a catalyst for the work that organizations like Interfaith Power and Light (IPL) have been championing. IPL, based in Oakland, California, has been actively promoting collaboration and offers resources regarding federal grants and tax credit opportunities, further amplifying the impact of these federal initiatives.
Granholm urged faith-based communities to convert faith into action, emphasizing the moral responsibility to secure a brighter future not just for oneself but for all humanity.
Ultimately, churches and faith-based organizations have a significant role to play in harnessing these federal programs, transforming faith into tangible actions that drive sustainability, equity, and a better future for all. Collaboration, advocacy, and utilization of these federal resources stand as critical steps towards a more sustainable and equitable future.
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