The co-moderator of the 226th General Assembly joins a webinar touting government support for renewable energy projects churches can use

The Rev. Tony Larson prays to open an informational webinar offered by Presbyterians for Earth Care

by Mike Ferguson | Presbyterian News Service

Photo by Evgeniy Alyoshin via Unsplash

LOUISVILLE — The Rev. Tony Larson, who serves Trinity Presbyterian Church of Southside Beach, South Carolina, and is co-moderator of the 226^th General Assembly, opened last month’s webinar hosted by Presbyterians for Earth Care on how the Inflation Reduction Act can benefit churches and other nonprofits with a prayer.

“God of all Creation, we know this very day the planet is warmer, that species are under threat and that communities are imperiled,” Larson told the Almighty. “We ask your forgiveness for the ways we have not been the stewards of Creation that you would have us to be.”

The Rev. Tony Larson

“We give thanks this evening for the tools of government that can help us move forward in progress. We give thanks for communities of faith that are seeking ways to be more responsible stewards, to transform their properties into places that generate renewable energy for their congregations and mission and communities, and give witness to the need to care for your Creation.

“Open our hearts and minds, open our ears to hear this presentation tonight, that we might make progress in greening the church. Amen.”

The Rev. Bruce Gillette, PEC’s moderator, introduced Ronald Newman, a senior advisor at the U.S. Treasury Department who’s working on IRA implementation. Newman addressed the 226^th General Assembly of the PC(USA) in June after earlier speaking to Presbyterian News Service.

Ronald Newman

Newman noted the IRA is the largest investment in clean energy in U.S. history, and much of that investment is delivered via tax incentives. The overall amount of funds will exceed $400 billion, and “the more people take advantage of tax credits, the more the investment ends up being,” since it’s not capped, Newman said.

Here are the slides Newman presented during the PEC webinar, originally aired on July 23. Newman’s presentation focused on incentives available to churches and other nonprofits.

Under what he called “a novel provision known as direct pay or elective pay,” churches and nonprofits — despite being tax-exempt — can benefit from these incentives and receive tax-free cash payments to cover a portion of the cost of major capital investments. “Tax credits can provide significant levels of assistance to nonprofits as they transition their fleets and/or complete solar, geothermal or other clean-energy installations,” Newman said. “These tax credits are generally uncapped in amount and are not subject to a competitive process, as with many grant programs.”

One important consideration is the requirement that churches and other nonprofits register in advance of requesting that tax-free cash payment, Newman said. Learn more here.

Of the dozen or so tax credits eligible for direct pay that can be accessed by nonprofits including churches, Newman highlighted three: the Investment Tax Credit, the Commercial Clean Vehicles Credit, and the Electric Vehicle Charging or Refueling Station Tax Credit.

During a question-and-answer session following Newman’s presentation, Gillette recommended visiting Interfaith Power & Light’s informational website on installing solar energy panels.

In addition, the Presbyterian Investment & Loan Program offers its Restoring Creation loans.

Clare Lewis

“These loans feature lower interest rates and reduced equity requirements compared to our traditional loans,” said Clare Lewis, the Investment & Loan Program’s president and chief executive officer. “Additionally, we provide bridge financing to help churches begin their projects while awaiting government funds. In many cases, we can structure the loan so that the payments are offset by the energy savings, making them budget neutral.”

Qualifying projects for Restoring Creation loans include high-efficiency HVAC systems, energy efficient lighting systems, high-efficiency water heaters, solar panels, insulation, and energy efficient roofing systems.

Newman pointed to a Berkeley Lab study indicating that when an anchor institution like a church installs a solar project, there can be 80 houses that follow suit over the next five years. “You’re a force in your community,” he said. “Interfaith Power & Light and others can be with you and walk the journey with you in a way the Treasury Department can’t.”