Treasury Finalizes Tribal Tax Rules, Unlocking Clean Energy Investment and Strengthening Tribal Economic Sovereignty

The Alliance for Tribal Clean Energy welcomes the U.S. Department of the Treasury and Internal Revenue Service’s issuance of two landmark sets of final regulations. One clarifies the federal tax status of entities wholly owned by Tribal governments, and the other finalizes regulations under the Tribal General Welfare Exclusion Act of 2014 (Section 139E). Together, these rules reduce regulatory uncertainty, expand pathways for Tribal-led clean energy development and strengthen Tribal economic sovereignty.

Tribal nations regroup after loss of federal funding for clean energy

An entrance to the Kayenta Solar Plant on June 23, 2024, in Kayenta, Ariz. The Navajo Tribal Utility Authority says the project is the “largest solar plant on any tribal land owned by its own people.”

Tribal nations looking to build clean energy projects are exploring new funding pathways after the Trump administration’s cuts to clean energy grants like Solar for All, which earmarked more than $500 million for solar development on tribal lands.

The Tribal Renewable Energy Coalition, an organization of 14 tribes which received a grant for more than $135 million in now-cancelled Solar for All funding, is continuing to use the solar project plans it developed but will seek funding sources like loans and philanthropy, Indigenized Energy CEO Cody Two Bears said during a November press call.

The Trump administration is stonewalling Tribal clean energy projects

Image credit: Lisa Martine Jenkins (Photo credit: Super8 / Shutterstock)

Dr. Crystal Miller, who leads policy and government relations for the Alliance for Tribal Clean Energy, said that from a Tribal perspective, the memo as written was a “re-institutionalization of paternalism over Tribal Nations.”

“This additional review layer makes it even harder for Tribes to meet timelines for federal grants, and projects on Tribal lands often already require right of ways, leases, and even cultural resource reviews, all of which are directly named in the memo,” Miller said.

Tribes forced to find new clean energy paths

President Donald Trump’s earlier executive orders and the comprehensive spending bill he just signed mark the end of dozens of tribal green energy initiatives. They mark a major shift in direction away from solar, wind, and other renewable energy sources championed during the Biden administration. Those projects aimed at energy sovereignty that can’t find new, private-sector funds will halt or scale back their original scope.

And, an Alaska tribal village is hoping a transition away from oil-fueled energy will both save money and help the environment.

Clean energy projects on tribal lands were booming. Then…

Crystal Miller, a member of the Walker River Paiute Tribe, heads government affairs and policy at the Alliance for Tribal Clean Energy, underlined the existential outcomes for tribal communities. “It is extremely life or death if you’re talking about clean energy projects, in particular solar, which provide energy to homes, provide heat to homes that wouldn’t have it without because they don’t have lines run to their community,” she said.

Statement by the Alliance for Tribal Clean Energy on the Passage of H.R. 1

As Congress advances H.R. 1, Tribal Nations face setbacks to clean energy progress and economic opportunity. The bill strips away critical support, but Tribes remain resilient and determined to build a sustainable, sovereign future. Despite these challenges, Native communities are committed to clean energy, economic self-determination, and a better future for all.

Coalition of Tribes Urge Senators to VOTE YES

On Monday evening, the Alliance for Tribal Clean Energy led a national coalition of Tribal Nations and organizations in calling on the U.S. Senate to support Senator Catherine Cortez Masto’s (D-NV) Amendment 2816, which would preserve essential funding for the Tribal Energy Loan Guarantee Program (TELGP).