NAESCO Statement on the American Energy Dominance Act and Restoration of Section 179D
Washington, D.C. — April 29, 2026 — The National Association of Energy Service Companies (NAESCO) issued the following statement in response to the American Energy Dominance Act, legislation introduced by Congressman Brian Fitzpatrick (R-PA), alongside Congressman Mike Lawler, Max Miller, and Mike Carey, to restore long-term certainty for federal energy and efficiency tax incentives.
Over the past year, NAESCO has engaged extensively with members of Congress to provide technical education on how targeted tax incentives—particularly Section 179D—function within the energy services market and enable infrastructure modernization through Energy Savings Performance Contracts (ESPCs). These projects leverage private capital to deliver budget-neutral upgrades that reduce energy consumption, improve system resilience, and ease demand pressure on the electric grid across public-sector facilities in the MUSH market.
Public-sector building owners and energy service company (ESCO) partners rely on federal energy tax incentives to support the financial structuring and execution of comprehensive infrastructure modernization ESPC projects that integrate multiple energy conservation measures (ECMs)—including HVAC system upgrades, high-efficiency lighting, advanced controls, renewable energy systems, and building envelope improvements—into a single performance-based contract, which reduces operating costs while delivering long-term, verifiable savings to taxpayers.
“When phase-out schedules for federal energy tax incentives were introduced in the One Big Beautiful Bill Act, it impacted project pipelines that depended on incentives for financial project viability,” said NAESCO Executive Director Dr. Timothy Unruh. “NAESCO responded by engaging directly with policymakers to reinforce that infrastructure modernization projects drive local construction activity, support domestic supply chains, and enable infrastructure investment without increasing taxpayer burden.”
At a time of rising energy costs and increasing fiscal pressure on state and local governments, the ability to implement cost-effective infrastructure upgrades without additional appropriations is critical. ESPC projects that incorporate federal energy tax incentives enable public entities to address deferred maintenance, modernize aging systems, and improve facility performance while maintaining budget neutrality—creating safe, efficient, and financially sustainable facilities for local communities.
“179D enables scope. It allows ESCOs and public-sector partners to move beyond incremental upgrades and implement integrated, whole-building solutions,” continued Unruh. “Without it, the economics of these projects narrow, and the ability to deliver comprehensive modernization, particularly in schools and municipal facilities, is constrained.”
NAESCO applauds Representatives Fitzpatrick, Lawler, Miller, and Carey for recognizing the role of federal energy tax incentives in advancing cost-effective infrastructure improvements and supporting investment in efficient, reliable public buildings.
NAESCO urges Congress to pass the American Energy Dominance Act.
About NAESCO:
The National Association of Energy Service Companies (NAESCO) is the leading advocacy and accreditation organization for Energy Service Companies (ESCOs) and is dedicated to modernizing America's building infrastructure. Uniting the energy services industry, NAESCO promotes favorable government policies, sponsors a rigorous accreditation program, provides training and education, and champions the interests of ESCOs across the nation.
Learn more about NAESCO, its members, membership benefits, and the accreditation process at www.naesco.org, and follow NAESCO on Twitter (@NaescoNews) and LinkedIn (@naesco).
Media Contact:
Julie Chesna
On behalf of NAESCO
608-772-5859
Julie.chesna@energyservicesmedia.com