After weeks of Capitol Hill uncertainty, Congress has passed the Infrastructure Investment and Jobs Act, which President Biden is expected to sign in the next week. Agudath Israel of America is pointing to a big plus and a big minus for nonprofits in the bill that emerged from the deliberations.
A welcome provision in the infrastructure bill relates to “Nonprofit Energy Efficiency,” a pilot program that awards grants to nonprofits to make upgrades to their energy infrastructure, thereby enhancing efficiency and producing cost savings. The program is authorized at $50 million and will allow grants of up to $200,000. Synagogues, yeshivas and other Jewish community institutions are among the eligible recipients.
“Agudath Israel was pleased to voice its support for this legislation and we look forward to the potential benefits that will accrue to the community,” commented Rabbi Abba Cohen, Agudath Israel’s Vice President for Government Affairs and Washington Director. “We thank the bipartisan leadership of Senators Amy Klobuchar (D-MN) and John Hoeven (R-ND), and we applaud the Orthodox Union for the vital role it played in seeing the legislation through over the past decade”.
On the other side of the infrastructure ledger is the bill’s elimination of the Employee Retention Tax Credit (ERTC) for the fourth quarter of this year. The ERTC is a refundable payroll tax credit designed to provide a financial incentive for nonprofit and small business employers to keep employees on their payrolls and continue to deliver important services during the pandemic and in its immediate aftermath.
Agudath Israel made the ERTC a priority, holding a webinar on the subject and fielding many concerned calls from community charities. It worked closely with others in the nonprofit sector to lobby for a strengthening and expansion of the program. “The credit was a real lifeline for many nonprofits, including those in the Jewish community, allowing them to retain critical employees in the face of current economic challenges,” Rabbi Cohen noted. “Cutting the program early, after employees have been brought back, can cause great harm to thousands of charities and jeopardize the services they provide.”
Numerous issues remain on the “nonprofit agenda,” including passing the Universal Charitable Deduction and safeguarding Donor Advised Funds. These, and other charitable issues, remain on Agudath Israel’s Washington Office priority list for the coming months.
