NAED’s Government Relations department is keeping our members updated about current happenings in D.C. The latest Washington Wire is here, recapping current events such as updates on the ENERGY STAR program, the 179D Tax Deduction, the launch of NAEDPAC, and state updates.
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Where’s Congress?
Each August, Congress takes its month-long recess to return home, meet with constituents, and campaign. While most work pauses, lawmakers may reconvene for urgent matters like disaster relief.
The recess tradition dates back centuries, before air conditioning in 1929 made Washington summers more bearable. It became an annual practice in the 1990s, and during this time, Congress holds brief “pro-forma” sessions to prevent recess appointments. Lawmakers return on September 2.
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ENERGY STAR Update
Before recess, the Senate Appropriations Committee approved $36 million in FY’26 funding for the ENERGY STAR program with strong bipartisan support (26–2). This matches FY’24 levels and follows House action, signaling broad agreement.
Earlier this year, NAED joined 30 trade associations urging Congress to preserve ENERGY STAR, which enjoys 90% household recognition and delivers proven savings without regulatory burdens.
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NAEDPAC
NAED has launched a Political Action Committee – NAEDPAC – to:
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Support Members of Congress aligned with NAED’s priorities
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Collaborate with industry partners (NEMA, NECA, NEMRA)
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Strengthen NAED’s presence in Washington
If you’d like to learn more, contact Ed Orlet or Bud Deflaviis by emailing naedpac@naed.org.
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Reminder: 179D Tax Deduction
The 179D deduction for energy-efficient commercial buildings phases out for projects beginning after July 1, 2026. Until then, property owners can claim up to $5.81/sq. ft. in deductions.
Other incentives—like Section 179 expensing (now capped at $2.5M) and bonus depreciation—may apply. Consult a tax professional to maximize benefits. NAED continues to advocate for extending 179D.
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State Updates
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New Jersey: Proposal (A5371/S4219) would revamp the municipal payroll tax.
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Michigan: HB 4737 would reduce corporate tax from 6% to 4.25% by 2030.
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California: SB-7 would regulate AI in employment decisions, requiring notice, human appeals, and worker data access.
Find more information on all of these issues here.
Contact NAED’s Director of Government Relations, Bud DeFlaviis, with any questions or comments. Subscribe to the Washington Wire here.
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