Renewable energy has created a manufacturing boom in the US, but tax incentives could be cut by Congress. Republican lawmakers are debating President Trump’s spending bill, which includes proposals to phase out clean energy tax credits.
Since the passage of the Inflation Reduction Act in 2022, solar, wind, and battery companies have announced plans to create or expand over 250 manufacturing facilities. These projects could create more than 575,000 jobs by 2030 and contribute $86 billion annually to GDP, according to a report by the American Clean Power Association.
The Inflation Reduction Act has benefited Republican districts the most, with 73% of active facilities located in red states. Solar manufacturing employs over 75,400 Americans, while solar and wind support 122,000 full-time jobs. However, supply chains for solar energy are concentrated in China, raising concerns about forced labor and human rights.
The tax credits that drove this growth are now under threat as Congress debates Trump’s spending bill. A draft proposal from the House Ways and Means committee would phase out advanced manufacturing tax credits and add stipulations making it difficult for projects to qualify for credits. If signed into law, the US clean energy industry could see job losses as factories shut down.
“The manufacturers that were being supported by these incentives… are getting the rug pulled out from under them,” said MJ Shiao, ACP Vice President of Supply Chain and Manufacturing.
Source: https://www.theverge.com/climate-change/670047/solar-wind-energy-battery-manufacturing-tax-credits-republican-spending-bill