KEY ISSUE
PROTECTING PUBLIC POWER FINANCING TOOLS
Demand for energy is surging across America, driven by AI data centers, advanced manufacturing centers, and the electrification of our economy. These industries aren’t just consuming more electricity, they are powering economic growth, creating jobs, and strengthening America’s global competitiveness.
To keep electricity affordable and reliable, Congress must protect critical financing tools that enable infrastructure investment—like tax-exempt municipal bonds and elective pay tax credits, which drive innovation across nuclear, hydrogen, storage, carbon capture, solar, and wind projects. Eliminating these financing tools will raise costs, delay projects, and impose a hidden tax on American families.

TAX POLICY PRIORITIES
Maintain Tax-Exempt Municipal Bonds
Tax-exempt municipal bonds help state and local governments fund essential infrastructure projects — roads, fire & police stations, schools, libraries, public hospitals, and utility infrastructure. Eliminating the tax exemption would drive up borrowing costs by $823 billion, hitting American households with an extra $6,500 in taxes and higher rates.
Preserve Elective Pay
Tax Credits
Public power utilities collectively serve 55 million Americans and rely on energy tax credits to fund critical energy projects. Without these credits, public power communities will face a $34 billion shortfall over the next decade — driving up costs for families and businesses, making new infrastructure unaffordable, and stalling the growth of key industries like AI and manufacturing.
Update Treasury’s Rostenkowski &
Private Use Rules
Outdated financial regulations—the Rostenkowski and private use rules—prevent public power utilities from buying and financing attractive generation assets for sale by private investors to meet rapidly growing load or entering into long-term energy contracts with customers to ensure they pay their fair share of infrastructure costs. These restrictive policies drive up costs, hinder energy innovation, and risk pushing major businesses and jobs overseas.
WHY IT MATTERS
MEETING AMERICA’S ENERGY NEEDS
Demand for Energy is Surging
Public Power is Investing in Energy Infrastructure to Meet Demand
Smart Financing Tools Make Infrastructure Investment Possible
Tax-exempt municipal bonds and elective pay tax credits help fund energy projects, which keeps electricity affordable and reliable, creates jobs, and boosts the U.S. economy.
Energy tax credits will unlock $34 billion for LPPC members’ planned investments over the next decade.
These credits will help these not-for-profit utilities build critical energy infrastructure while reducing the financial burden on American families and businesses.
Over the last decade, more than $4 trillion in tax-exempt municipal bonds have been issued, funding 90% of all public-sector construction.
Energy tax credits spurred nearly $5.50 in private investment for every $1 claimed, driving $220 billion into innovative and emerging technologies like battery storage and hydrogen in just one year.

THE HIDDEN COST OF INACTION
If Congress Fails to Protect Financing Tools, it Will Cost American Families
