Government Incentives for Green Cleaning Startups in the U.S.

Introduction

Defining Green Cleaning

Green cleaning refers to the use of cleaning methods and products that are environmentally friendly and safe for human health. Unlike conventional cleaning practices, which often rely on harsh, petroleum-based chemicals, green cleaning emphasizes:

Non-toxic, biodegradable cleaning agents, free from chlorine, ammonia, and synthetic fragrances;

Sustainable tools and equipment, including reusable microfiber cloths and HEPA filter vacuums;

Energy-efficient practices and smart systems, such as steam cleaning, ozone sanitation, and automatic chemical dilution dispensers.

At its core, green cleaning aligns with environmental standards and regulations set by organizations like the U.S. Environmental Protection Agency (EPA) and global certifications such as Green S eal, Ecolabel, and LEED.

The goal is not just cleanliness but a reduced environmental footprint, improved indoor air quality, and enhanced well-being for building occupants and cleaning staff alike.

Key principles of green cleaning include: Lower exposure to volatile organic compounds (VOCs); Safer air and surface condition s for children, the elderly, and immunocompromised individuals; Responsible waste management and packaging reduction; Support for circular economy practices through recycling and reuse.

Green cleaning is no longer a niche practice. It’s an evolving standard in public institutions, corporate buildings, hospitals, and schools — driven by both public health priorities and sustainability commitments.

A Growing Market and Investment Opportunity

The green cleaning industry is experiencing unprecedented growth, fueled by rising consumer demand, corporate sustainability goals, and aggressive government support for clean technologies.

Surface Cleaning Products Market Size was valued at $17.9 billionin 2020, and is projected to reach $29.6 billion by 2032, growing at a CAGR of 4.2%.. The U.S. alone represents a major share of this market, especially within sectors such as:

Healthcare and eldercare facilities, which require non-toxic sanitation;

Educational institutions, seeking safer environments for children;

Hospitality and commercial real estate, aiming for LEED and WELL certifications.

Investment in green cleaning startups — from product development to service-based business models — is increasingly seen as low-risk and high-potential, especially when paired with federal incentives. The U.S. government, through initiatives such as the Greenhouse Gas Reduction Fund, SBA’s green lending programs, and the Inflation Reduction Act, is actively funding companies that promote sustainable operations.

In addition to financial support, major corporations are adapting environmental, social, and governance (ESG) frameworks that prioritize green contracto rs. This creates consistent demand and long-term contracts for eco-certified cleaning providers.

Fact: Over 60% of Fortune 500 companies have committed to achieving net-zero emissions by 2030–2050, making green cleaning services not only relevant but essential for their operations.

Green cleaning is no longer just an ethical preference — it's an economically smart move. With a combination of federal backing, shifting regulations, and growing private demand, startups entering this space have a clear path to scale and profitability.

Why Government Incentives Matter

The U.S. government plays a critical role in shaping and accelerating the green cleaning industry through legislative mandates, financial incentives, and regulatory frameworks. These interventions are not just symbolic — they are strategic tools to reduce environmental harm, protect public health, and stimulate green economic growth. For startups in green cleaning, understanding and leveraging these incentives is essential for scaling operations, cutting costs, and staying compliant in a rapidly evolving marketplace.

Policy Motivations: Environment, Health, Economy

Environmental Sustainability. One of the primary motivations behind government incentives for green cleaning businesses is to reduce the country’s ecological footprint. Traditional cleaning products often contain toxic ingredients that: Contribute to air and water pollution; Accumulate in landfills; Release volatile organic compounds (VOCs) that degrade indoor air quality; Negatively impact local ecosystems when washed into storm drains and waterways.

Green cleaning alternatives, on the other hand, focus on biodegradable ingredients, reduced packaging waste, and energy-efficient processes, all of which support the U.S. goal of achieving net-zero greenhouse gas emissions by 2050, as outlined in the U.S. National ClimateStrategy.

Public Health Protection. Another major reason governments support green cleaning is to protect human health — particularly in schools, hospitals, and long-term care facilities, where vulnerable populations are at higher risk of exposure to toxins. Traditional cleaning products have been linked to: Asthma and respiratory irritation; Skin allergies; Hormonal disruptions due to phthalates and other endocrine-disrupting chemicals.

By incentivizing safer alternatives, the government reduces public healthcare costs and promotes healthier living and working conditions for millions of Americans.

Economic Development and Job Creation. Government incentives also aim to spur entrepreneurship, create clean-sector jobs, and build domestic supply chains for green technologies. According to the U.S. Bureau of Labor Statistics, jobs in environmental and clean technology sectors — including eco-friendly product manufacturing, green janitorial services, and sustainable logistics — are among the fastest-growing employment categories.

Incentives such as grants, tax credits, subsidized loans, and procurement preferences allow startups and small businesses to compete with larger incumbents, innovate with new technologies, and penetrate both public and private markets.

Role of Key Institutions: Indiana, EPA, DOE, SBA, and Others

U.S. Environmental Protection Agency (EPA). The EPA plays a foundational role in gre en cleaning initiatives. Through its Safer Choice Program, the EPA certifiesproducts that meet strict health and environmental criteria, making them more marketable in public procurement and to eco-conscious consumers. The EPA also funds various programs that directly benefit startups, including: Environmental Justice Grants (for businesses serving disadvantaged communities); Pollution Prevention (P2) Grants (supporting eco-efficient manuf acturing); Clean Communities Investment Accelerator (under the Greenhouse Gas Reduction Fund). The agency also offers technical support, labeling programs, and databases that green cleaning startups can use to validate product claims and enhance trust.

U.S. Department of Energy (DOE). While best known for energy p olicy, the DOE funds innovations in clean technology, including efficient equipment used in cleaning operations, such as low-energy washers, battery-powered sweepers, and industrial HVAC sanitation systems. Programs like: Office of Energy Efficiency and Renewable Energy (EERE), Building Technologies Office (BTO), often fund R&D and commercial deployment of energy-efficient cleaning tools and monitoring devices. Startups that integrate IoT monitoring systems to reduce water, energy, or chemical waste in cleaning can often qualify for support from DOE’s Small Business Voucher programs or state-level DOE affiliates.

Small Business Administration (SBA). The SBA is vital for small greenstartups looking to access capital, mentorship, and federal contracts. Key programs include: Green Lending Programs: SBA-backed loans for businesses purchasing certified green products or adopting sustainable operations; SBIR/STTR Programs: Grants for R&D-heavy startups focused on environmentally friendly innovations; 8(a) Business Development Program: Helps socially and economically disadvantaged businesses (including many minority-owned green startups) secure long-term federal cleaning service contracts.

The SBA also assists businesses in navigating green procurement certifications, such as registering in SAM.gov, getting a DUNS number, and qualifying for Environmentally Preferable Purchasing (EPP) preference.

The Role of States — Example: Indiana

States play a pivotal role by supplementing federal programs with local funding, tax incentives, and regulatory support. Take Indiana, for example — often overlooked in sustainability circles, but increasingly active: The Indiana Department of Environmental Management (IDEM) offers grants and rebates for waste reduction and greenbusiness operations. Indiana's Clean Manufacturing Technology Institute (CMTI) helps small firms adopt cleaner production methods — including green cleaning technologies. Cities like Indianapolis and Bloomington have local green business certifications that increase visibility and trust with eco-conscious customers.

Additionally, state-level Property Assessed Clean Energy (PACE) financing allows green cleaning businesses in commercial real estate to upgrade facilities without up-front costs.

Greenhouse Gas Reduction Fund ($27 Billion)

The Greenhouse Gas Reduction Fund (GGRF), administered by the U.S. EnvironmentalProtection Agency (EPA), is a $27 billion climate financing initiative created under the Inflation Reduction Act of 2022. This fund aims to mobilize clean energy projects, reduce emissions, and increase access to climate-friendly technologies—with a strong focus on underserved and low-income communities.

Key programs within the GGRF include:

National Clean Investment Fund (NCIF) – $14 billion. Funds nonprofit greenbanks that, in turn, invest in clean small businesses. Offers low-interest loans and grants for companies adopting climate-friendly operations, such as sustainable cleaning services or the use of certified green products.

Clean Communities Investment Accelerator (CCIA) – $6 billion. Provides technical assistance and capital to community-based lenders that support small businesses using eco-friendly practices. Ideal for startups serving schools, senior living centers, or community buildings in environmental justice zones.

Solar for All – $7 billion. While primarily focused on residential solar access, it indirectly benefits service providers who offer green maintenance and cleaning for solar-powered buildings or participate in clean infrastructure supply chains.

Why it matters for cleaning startups:

Cleaning firms that use energy-efficient tools, biodegradable products, or serve energy-transition facilities (like solar-powered buildings) may be eligible for indirect or direct funding. Startups can partner with nonprofits or green banks to receive technical and financial support.

Inflation Reduction Act (IRA) Tax Credits

The Inflation Reduction Act, passed in 2022, is the mo st significant U.S. legislation to date focused on climate and energy. While much of its $369 billion climate budget targets renewable energy, a number of its tax provisions can benefit green cleaning companies—particularly those investing in clean vehicles, facilities, or technologies.

Tax credits relevant to green cleaning startups:

Section 179D – Energy-Efficient Commercial Buildings Deduction. Allows building owners and service providers to claim deduct ions for installing energy-saving systems, including HVAC sanitation technologies and high-efficiency cleaning equipment.

45W – Commercial Clean Vehicle Credit

Offers up to $40,000 in tax credits per qualified clean vehicle purchased for business use.

Beneficial for green cleaning companies using electric or low-emission service vans.

179C – Advanced Manufacturing Investment Credit. Can apply to cleaning product manufacturers investing in low-emission production technologies or sustainable packaging processes.

Energy Efficiency Rebates (Home and Business Programs) . Businesses investing in water-saving or energy-efficient janitorial hardware (like smart dispensers or low-flow carpet extractors) may qualify for rebates, depending on their state’s participation.

Pro Tip for Startups: Green cleaning firms that retrofit their operations with energy-efficient systems or clean transport fleets can claim these deductions, reducing overhead and boosting profit margins.

SBA Small Business Innovation Research (SBIR) Program

The Small Business Innovation Research (SBIR) program, overseen by the U.S. Small Business Administration (SBA), is a non-dilutive funding program that provides early-stage capital to R&D-intensive startups solving national challenges.

Green cleaning companies that develop innovative products, chemicals, or cleaning equipment can apply to receive Phase I (up to $275,000) and Phase II (up to $1.9 million) funding.

Relevant project examples:

Development of non-toxic antimicrobial coatings; Biodegradable, plant-based cleaning compounds that outperform conventional disinfectants; Smart cleaning systems that optimize chemical use and minimize environmental waste.

Over 11 federal agencies participate in SBIR, including the EPA, DOE, and Department of Health and Human Services (HHS) — each offering funding topics that green cleaning startups can address.

Key Benefits: 100% equity-free capital; Prestige and credibility with investors; Follow-on support through government contracts and commercial partnerships.

Relevant DOE & EPA Grants

Among the most practical sources of non-dilutive funding for green cleaning startups in the U.S. are competitive grant programs offered by the Department of Energy (DOE) and the Environmental Pro tection Agency (EPA). These grants are designed not only toaccelerate innovation and reduce emissions but also to foster environmental justice, sustainable manufacturing, and safe waste handling — all of which are directly or indirectly linked to the green cleaning sector.

One of the standout opportunities is the Clean Communities Investment Accelerator (CCIA), part of the broader $27 billion Greenhouse Ga s Reduction Fund created by the Inflation Reduction Act and managed by the EPA. The CCIA allocates $6 billion to help community lenders and nonprofit organizations deploy climate financing into disadvantaged and underserved areas. While the program does not fund green cleaning companies directly, it partners with community financial institutions that do. This means that green cleaning startups serving public schools, housing authorities, or community health clinics — especially in low-income regions — can access affordable loans, grants, or business services by partnering with local lenders backed by CCIA funding. These partnerships are often a gateway to securing capital for equipment upgrades, hiring, and expanding sustainable operations.

In parallel, the EPA’s Sustainable Materials Management (SMM) grant initiatives focus on waste reductio n, recycling innovation, and responsible use of natural resources — all of which are important for cleaning startups that produce, consume, or distribute cleaning products. Businesses working on refillable containers, packaging-free supply chains, compostable product lines, or reusability programs are increasingly eligible for these SMM grants. For example, a green cleaning company that adopts a closed-loop system for reusable spray bottles or offers subscription-based, zero-waste cleaning refills may qualify for financial assistance under these programs. The EPA often prioritizes projects that demonstrate both environmental benefits and scalable business models, especially in high-impact sectors like building maintenance, hospitality, and healthcare services.

The Department of Energy (DOE) also supports initiatives that intersect with green cleaning, particularly in the areas of battery recycling and advanced materials management. While these may seem unrelated on the surface, green cleaning startups that utilize battery-powered scrubbers, sweepers, vacuums, or electric service vehicles can benefit from programs designed to reduce the environmental impact of battery use. The DOE’s Office of Manufacturing and Energy Supply Chains (MESC) and the Office of Energy Efficiency and Renewable Energy (EERE) offer grants to small businesses investing in battery lifecycle optimization, second-life reuse technologies, and safe disposal practices. For startups incorporating battery-driven equipment into their operations — or even developing proprietary low-waste battery tech for commercial use — these grant programs represent a vital opportunity to fund innovation and reduce long-term equipment costs.

Taken together, the funding options provided through the EPA and DOE reflect a national policy trend: the government is not only trying to decarbonize the economy but also support sustainable practices across every layer of the supply and service chain. Green cleaning startups — especially those prioritizing circular design, clean energy, and waste reduction — stand to benefit greatly by aligning their business models with these federal priorities.

Investing in Green Cleaning Technologies

As the demand for sustainability reshapes nearly every major industry in the U.S., green cleaning technologies are emerging as a high-potential investment sector. These innovations go far beyond replacing conventional cleaning products with "green" alternatives; they represent an evolving marketplace of scalable, revenue-generating business models rooted in efficiency, compliance, and environmental responsibility. Whether you're an entrepreneur launching a startup, a service provider modernizing your operations, or an investor looking for climate-positive returns, understanding where green cleaning technologies intersect with profitability is essential.

One of the most straightforward entry points is the development or distribution of eco-friendly cleaning products, including biodegradable detergents, nontoxic disinfectants, and plant-based multi-surface solutions. These products appeal to health-conscious consumers, schools, hospitals, and LEED-certified buildings. The business model here may take the form of a direct-to-consumer e-commerce brand, a wholesale supply operation, or a subscription-based B2B delivery service. Increasingly, these products are being paired with zero-waste packaging models or refillable systems, reducing customer churn and aligning with broader ESG (Environmental, Social, and Governance) criteria that large clients now prioritize.

Another promising area is investment in energy-efficient and low-impact cleaning equipment. Startups are finding success by developing or distributing smart floor scrubbers, HEPA vacuums, UV sanitation systems, and even robotic cleaners designed for green-certified facilities. These products reduce electricity and water consumption while minimizing chemical waste. Capital costs are often higher up front, but they’re frequently eligible for tax deductions or rebates under energy-efficiency provisions in federal and state law. Equipment-as-a-service (EaaS) models are gaining traction, allowing clients to lease equipment with ongoing maintenance and tech support — a model that generates recurring revenue and improves cash flow predictability for the startup.

A more advanced opportunity lies in integrating Internet of Things (IoT) systems into commercial cleaning workflows. These smart systems track and optimize the use of resources — for example, monitoring chemical usage, water flow, battery efficiency, or room-by-room cleaning schedules in real time. Facilities managers and operations teams value these systems for their ability to reduce labor costs, improve compliance with sanitation protocols, and document sustainability metrics for investors or regulators. From a business perspective, IoT-enabled cleaning solutions can justify premium pricing, support software-as-a-service (SaaS) revenue streams, and provide valuable data that strengthens client retention. This tech-forward approach also attracts venture capital and government R&D grants, making it highly scalable for startups with technical expertise.

When evaluating the return on investment (ROI) for green cleaning technologies, several key drivers stand out. First, many businesses and institutions are actively seeking green-certified vendors to meet internal climate goals or procurement standards, creating a competitive sales advantage for early adopters. Second, green cleaning services typically reduce liability risks related to chemical exposure, which can translate into lower insurance premiums or fewer workplace safety incidents. Third, sustainable cleaning operations often qualify for government contracts, tax credits, and grants that reduce operating costs and improve margins.

Scalability is another strong argument for investment. Green cleaning companies can scale through franchise models, regional expansion, vertical integration, or even B2B licensing of their proprietary products or technologies. Thanks to the growing public-sector focus on sustainability, there is a rapidly expanding addressable market in schools, healthcare systems, federal buildings, and private LEED-certified real estate. Companies that demonstrate a reliable, replicable service model while integrating measurable sustainability outcomes are especially well-positioned for both public and private investment.

Ultimately, green cleaning technologies represent a rare convergence of impact and profitability. By blending environmental innovation with smart business design — whether through eco-friendly consumables, intelligent equipment, or resource-efficient automation — entrepreneurs and investors alike can tap into a market that is not only growing but also shaping the future of commercial and institutional maintenance in America.

Case Studies: Successful Startup Stories

The green cleaning industry in the United States has witnessed remarkable growth over the past decade, driven by increased environmental awareness, stricter regulations, and government incentives aimed at fostering sustainable business practices. Several startups have successfully leveraged innovative technologies, eco-friendly products, and strategic funding to build profitable and scalable businesses that contribute positively to environmental health. These case studies highlight some of the most impactful companies that exemplify the potential of green cleaning ventures.

One notable example is Method Products, PBC, a pioneer in eco-friendly household cleaning solutions. Founded in 2000, Method revolutionized the market by introducing biodegradable, non-toxic cleaning products packaged in recyclable materials. Their commitment to sustainability extends beyond the products themselves; Method’s innovative use of post-consumer recycled plastics for packaging set a new standard in the industry. The company rapidly expanded its product line and global reach, ultimately catching the attention of larger corporations. In 2017, Method was acquired by Ecover, further amplifying its market presence and impact. Method’s success demonstrates how integrating environmental responsibility with strong branding and design can drive consumer loyalty and business growth.

Another standout in the sector is Seventh Generation, founded in 1988 but gaining renewed momentum in recent years thanks to increasing demand for safe, plant-based cleaning and personal care products. The company is widely recognized for its rigorous commitment to transparency, sustainability, and social responsibility, including their advocacy for ingredient disclosure and support for climate-related policies. Seventh Generation has successfully positioned itself as a leader in the natural products market and, like Method, was acquired by a major corporation—Unilever—in 2016, underscoring the strategic value of green brands in mainstream retail.

On the technology and service side, CleanTech startups like GreenWorks Tools have introduced innovative equipment aimed at reducing environmental impact. GreenWorks specializes in battery-powered, electric outdoor cleaning tools that minimize noise and eliminate direct emissions from gas-powered equipment. These tools are increasingly adopted by commercial cleaning services and municipalities seeking to reduce their carbon footprint. The company’s growth was supported by grants from the Department of Energy and partnerships with local governments, illustrating how federal programs can accelerate the adoption of cleaner technologies.

In the B2B cleaning service space, Jani-King, while not originally a green startup, has made significant strides in incorporating green cleaning practices by adopting environmentally friendly products and training franchisees to meet sustainability standards. Their large network enables the diffusion of green technologies and practices at scale, showing how established businesses can evolve toward sustainability.

Additionally, innovative startups like EcoMe focus on transparency and consumer empowerment by developing green cleaning products with clear, easily accessible ingredient information via QR codes and mobile apps. This approach aligns with modern consumer demands for trust and accountability, positioning EcoMe as a disruptor in the eco-friendly cleaning market.

What these case studies share in common is their ability to combine innovation, sustainability, and effective business strategies—often supported by government grants, tax incentives, and regulatory compliance programs—to capture growing market segments. They demonstrate that green cleaning is not just a niche but a viable and expanding industry with significant opportunities for startups that prioritize environmental and social governance alongside profitability.

Future Trends: Hydrogen-Based Cleaning and Carbon Capture in Industrial Cleaning

As sustainability becomes an operational imperative across industries, green cleaning technologies are evolving from biodegradable soaps and smart devices toward deep-tech innovations like hydrogen-based cleaning systems and carbon capture solutions for industrial-scale sanitation. These advancements represent not just incremental improvements, but a rethinking of how cleaning can serve both economic and environmental objectives at scale — especially in sectors with high emissions or strict hygiene requirements.

Hydrogen-Based Cleaning: A Zero-Residue, High-Efficiency Alternative

One of the most promising innovations on the horizon is the use of hydrogen-infused water (also known as hydrogen-rich water or reduced water) in commercial cleaning applications. Unlike conventional cleaning agents, electrolyzed hydrogen water exhibits strong antioxidant properties and can act as a natural disinfectant due to its high pH and redox potential. When used in commercial or medical cleaning, it can eliminate bacteria and organic contaminants without leaving chemical residues — a crucial advantage for food production facilities, hospitals, and cleanrooms.

Early adopters in Japan and South Korea have already integrated on-site hydrogen water generators into their sanitation workflows, reducing reliance on traditional chemicals and cutting back on water usage. In the U.S., this approach is gaining traction in high-regulation environments, especially in the pharmaceutical and semiconductor industries where even trace contaminants can cause production failure.

Moreover, hydrogen-based systems offer operational benefits: the cleaning solution is typically generated on-demand through water electrolysis, eliminating the need for transporting large volumes of cleaning chemicals. This aligns with emerging ESG goals around supply chain decarbonization and packaging reduction. For startups, this presents a new product category — compact, smart hydrogen-water generators — that can be marketed to facility managers, food processing plants, and even eco-focused residential markets.

Carbon Capture in Industrial Cleaning: The Next Frontier

In heavy industry, manufacturing, and petrochemicals, the cleaning process itself often releases volatile organic compounds (VOCs), particulate matter, and carbon emissions, particularly when high-temperature degreasing or solvent-based cleaning is involved. With carbon regulation becoming stricter across the U.S., there is now an emerging focus on integrating carbon capture and filtration systems directly into industrial cleaning operations.

This trend involves embedding miniaturized carbon capture technology into ventilation systems, exhaust ducts, or industrial washers. These systems use chemical sorbents or membrane-based filters to capture CO₂ emissions at the point of release and either neutralize it or store it for industrial reuse. For example, captured CO₂ from a cleaning process in a metal finishing plant might be repurposed for pH control in water treatment or redirected to algae-based bioreactors used in adjacent facilities.

Startups exploring this space are focusing on modular, retrofittable carbon capture units that can be attached to existing cleaning infrastructure without the need for a complete overhaul — an attractive proposition for industrial clients looking to meet emissions targets under new SEC and EPA disclosure rules. Some companies are also looking to monetize the captured carbon, using carbon credits or offset markets as an additional revenue stream.

Government funding is starting to catch up: the U.S. Department of Energy (DOE) and ARPA-E have both issued funding opportunities for "point-source carbon capture in non-traditional sectors," including food processing and cleaning-intensive industries. These grants lower the barrier to entry for innovation in this niche, especially for early-stage tech firms with prototype systems.

What This Means for Investors and Entrepreneurs

Together, hydrogen-based cleaning and carbon capture represent a fundamentally different trajectory for green cleaning: one rooted in clean energy systems, emissions science, and precision chemistry. These aren’t just sustainable alternatives — they are, in many cases, superior performance technologies that align with the needs of highly regulated or emissions-heavy sectors.

For investors, this opens up high-growth opportunities in B2B clean tech and industrial services. For entrepreneurs, it means the future of cleaning will be driven not only by what is removed (germs, grime, emissions), but also by how the cleaning process itself is made cleaner — from input to output.