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Federal Tax Credits and Recent Policy Changes: What Local Organizations Need to Know

Writer's picture: Good Stewards NetworkGood Stewards Network

Learn how policy changes affect clean energy tax credits and how individuals and organizations can still access incentives for solar, EVs, and efficiency upgrades.

As stewards of our communities and environment, many local organizations rely on federal energy tax credits to support their sustainability initiatives. With recent executive orders from the Trump administration, there's understandable concern about the future of these crucial incentives. Let's break down what these changes mean for community organizations and environmental projects.



Current Status of Federal Energy Tax Credits

First, some reassuring news: The Inflation Reduction Act (IRA) tax credits remain intact. Despite recent executive actions, these credits can only be modified through congressional action, not executive orders. This means local organizations can continue to access important incentives for:




Understanding Recent Policy Changes

While the recent executive orders have generated headlines, their impact on federal energy tax credits is more limited than many fear. The administration's January 2024 actions primarily affect:



Importantly, the administration's clarifying memorandum specifically excluded IRA tax credits from the pause on federal energy tax credits initiatives. This means community organizations can continue to rely on these crucial financial tools for their environmental projects.



What This Means for Local Organizations


What Remains Available:

  • The full range of IRA tax credits

  • State and local Federal energy tax credit incentives

  • Private funding mechanisms

  • Solar and battery storage incentives


What May Be Affected:



Tips for Individuals

Federal tax credits and incentives aren’t just for organizations—individuals can also take advantage of key programs to lower costs and support sustainability efforts. Here’s how you can benefit:


  1. Claim Home Energy Tax Credits – Homeowners can receive tax credits for installing solar panels, energy-efficient windows, heat pumps, and other upgrades. Learn more about eligibility through the Energy Star federal tax credit guide.

  2. Consider Electric Vehicle Incentives – The Clean Vehicle Credit offers up to $7,500 for qualifying electric and hybrid vehicles. See the latest updates and eligible models from the Department of Energy.

  3. Use State and Local Incentives – Many states offer additional rebates for solar energy, energy-efficient appliances, and home improvements. Check the Database of State Incentives for Renewables & Efficiency (DSIRE) for programs in your area.

  4. Explore Community Solar Programs – If rooftop solar isn’t an option, consider community solar projects, which allow you to subscribe to local solar farms and receive utility bill savings. Learn more at Energy.gov.

  5. Upgrade to Energy-Efficient Appliances – Rebates and incentives are available for high-efficiency appliances like refrigerators, washing machines, and water heaters. Find discounts through the ENERGY STAR Rebate Finder.

  6. Make Small Changes for Big Impact – Simple actions like using LED bulbs, unplugging unused electronics, and weatherproofing your home can reduce energy use and lower bills over time.


By taking advantage of these programs, individuals can save money while supporting clean energy and sustainability in their communities.



Tips for Local Organizations 

  1. Focus on Private Land Projects - Local initiatives on private property remain largely unaffected by recent changes. Consider prioritizing these projects in the short term.

  2. Leverage State Programs - Many states offer additional incentives independent of federal programs. Check your state's Database of State Incentives for Renewables & Efficiency (DSIRE) to maximize available support.

  3. Document Everything - Maintain detailed records of all federal energy tax credit initiatives and expenses. This documentation remains crucial for claiming available tax credits.

  4. Partner Locally - Build relationships with local financial institutions and organizations familiar with federal energy tax credit financing options in your community.



Looking Forward

While the political landscape may shift, the fundamental structure of federal energy tax credits remains stable through congressional legislation. Local organizations should continue their important work while staying informed about policy developments.

Remember that environmental stewardship happens at the community level, regardless of national policy changes. By focusing on local action and utilizing available resources wisely, organizations can continue making meaningful progress toward sustainability goals.



Additional Resources



While recent policy changes have created some uncertainty, the core framework of federal energy tax credits remains stable and accessible to local organizations. By staying informed and focusing on community-level action, we can continue our vital work of environmental stewardship.


Remember: our impact begins at the local level. Through careful planning and collaboration, community organizations can continue leveraging these important financial tools to create positive environmental change.



Note: Tax regulations and policies can change rapidly. Always consult with qualified tax professionals for the most current guidance specific to your organization's situation.ization's situation.

© 2021 by Good Stewards Network 

In Partnership With The Evangelical Environmental Network

Good Stewards Network is a registered 501(c)(3).

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