That’s right. The US uses its tax system to incentivize behavior. Say the government wants its citizens to buy more electric cars than ICE cars. It can put a ban on selling ICE cars but because the US by and large detests regulation, that has a huge political cost. So instead the government gives you a tax credit for buying a Tesla.

Or the government wants to encourage home ownership, so it makes mortgage interest tax deductible.

Or it wants you to get married so it gives you a tax break for filing jointly.

Or it wants you to live in Alaska so it gives you a tax credit to move there.

Or it wants you to revive an economically insecure geographical area so it gives your business a tax break for operating there.

Or it wants you to hire ex convicts so it gives you a tax credit for each one you hire.

This is a mechanism that is used by the federal and state governments to drive behavior. Arguably churches being tax exempt then is the government encouraging its citizens to participate in church activities because we are only one nation “under god”.