Infrastructure Bill and its Support for Schools and Nonprofits
On Friday, November 5, 2021, Congress passed the $1.2 trillion bipartisan infrastructure package, the Infrastructure Innovation and Jobs Act. This package touches on everything from roads and bridges to transportation to the nation’s water, energy, and broadband systems. It is designed to increase safety and efficiency when transporting goods and services across the country as well as improve the deteriorating national infrastructure system and combat climate change. There are many provisions in this future law that benefit schools and nonprofits; below are a few of those provisions of note:
- The bill dedicates $15 billion for grants to clean up drinking water by removing lead-contaminated pipes and making other updates to current infrastructure. This also includes setting aside at least $25 million per year for “small and disadvantaged communities.”
- The bill dedicates $5 billion to upgrading school buses to clean-energy, cost-efficient models. These new buses are to either use electric charge or some other type of alternative fuel source to help reduce carbon emissions. The program gives priority to those low-income, rural, and Tribal school districts.
- The bill dedicates $65 billion for improving the nation’s broadband infrastructure, particularly in unserved and underserved areas. The goal is to increase the affordability of quality internet and allow for more Americans to enjoy the same quality internet access, regardless of where you are located.
- The bill dedicates $1 million per state to create safe routes for students to walk or bike safely to school from within a 2-mile radius of the school building. This is designed to increase safety and encourage alternative transportation methods and healthy, active lifestyle choices.
- The bill includes the Energy Efficiency Materials pilot program which would fund $50 million in grants to nonprofits to make upgrades to their facilities. The Department of Energy would oversee the program and can provide grants of up to $200,000 for each nonprofit project. Nonprofits could use this funding for new HVAC units, generators, doors, windows, roofs, and lighting systems.
One downside for nonprofits and small businesses is that the bill includes funding a portion of the package by eliminating the employee retention tax credit for the fourth quarter of 2021. Many nonprofits were already claiming these credits based on eligibility from a qualifying gross receipts reduction in Q3 and will need to pay back the Q4 credits already claimed once the package is signed into law.
The package now moves to the President for signing and the attention turns to the Build Back Better deal, which has new momentum of its own. Stay tuned for more updates and how these deals can impact schools and nonprofits.
Thank you for this overview. When you mention Non-profits in the Energy Efficiency Materials Pilot Program, how are churches impacted by this program?