Since nonprofits are tax-exempt entities, they cannot currently benefit from many energy support programs because the programs are often structured in the form of tax credits

The Nonprofit Energy Efficiency Act would create a grant program to assist nonprofit organizations, including schools, hospitals, faith-based organizations, and youth centers, improve the energy efficiency of their buildings and generate renewable energy 

Washington, DC – U.S. Senators Amy Klobuchar (D-MN) and John Hoeven (R-ND) introduced a bill to help nonprofit organizations save money through energy efficiency. Since nonprofits are tax-exempt entities, they cannot currently benefit from many energy support programs because the programs are often structured in the form of tax credits. The Nonprofit Energy Efficiency Act would create a grant program to assist nonprofit organizations, including schools, hospitals, faith-based organizations, and youth centers, improve the energy efficiency of their buildings and generate renewable energy.

“From schools to hospitals to places of worship, nonprofits serve our communities and deserve the same opportunity as other organizations to make affordable energy efficiency upgrades,” Klobuchar said. “This bipartisan bill would boost America’s energy independence while helping nonprofits to make energy efficiency improvements, save money, and ultimately serve more people.”

“Our bill would create fairness for our churches, hospitals and other benevolent organizations when they work to make their facilities more energy efficient,” Hoeven said. “It will not only help them save money and increase our energy security, but also enable them to devote more of their resources to the valuable services they provide to the public.”  

The Nonprofit Energy Efficiency Act would provide $10 million each year for the next five years to create a pilot grant program at the U.S. Department of Energy (DoE) to help nonprofits make their buildings more energy efficient. The grants would promote energy efficiency by supporting upgrades to existing infrastructure as well as the installation of renewable energy generators and heaters. Nonprofits could apply for grants up to 50% of the total cost of the energy efficiency program—up to $200,000. The legislation contains an offset from other DoE program resources. It is supported by the National Council of Churches, the YMCA of the USA, and the Union of Orthodox Jewish Congregations.

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