Clean energy tax credit repeals could cost Utah thousands of jobs, industry group says

Yahoo

2 days ago

WASHINGTON — The massive reconciliation bill making its way through Congress could lead to the loss of thousands of energy-related jobs in Utah, according to a new study released on Tuesday.
The report, conducted by the Solar Energy Industries Association, found that the tax bill being considered by lawmakers could eliminate 330,000 industry jobs by 2028, including 2,700 in Utah. The GOP-led reconciliation bill would repeal clean energy tax credits previously passed by the Biden administration through the Inflation Reduction Act as Republicans look to end federal subsidies related to green energy.
'Lost jobs in every single state are a recipe for disaster for American families, businesses, and the U.S. economy,' said SEIA president Abigail Ross Hopper in a statement.
'Axing energy jobs means shuttered U.S. factories, canceled local investments, and energy shortfalls nationwide. We hope that U.S. senators won't let their constituents lose their livelihoods on their watch,' Hopper said.
If the tax credits are overhauled, clean energy groups warn that hundreds of factories across the country could be closed and 'erase $286 billion in local investment in American communities.'
The IRA creates significant tax credits for renewable energy projects such as solar, wind and geothermal. These Investment Tax Credits incentivize households and businesses to install renewable energy systems by allowing them to deduct a percentage of the cost from federal taxes.
However, some Republicans and conservative organizations argue the federal subsidies actually raise energy prices while reducing the reliability of power systems.
The Club for Growth has spoken out against green energy subsidies, arguing renewable energy sources struggle to remain competitive with other energy sources without government support. The group has also pointed to studies that show the tax cuts resulting in job growth over the next decade.
'This is an obviously biased report on an industry that is being subsidized by American taxpayers,' David McIntosh, president of Club for Growth, said in a statement to the Deseret News. 'It would be unfortunate if Sen. (John) Curtis put his liberal environmental benefactors above basic economics and good energy policy.'
The Club for Growth is targeting Curtis for his efforts to protect green energy tax credits currently on the chopping block in President Donald Trump's 'big, beautiful bill.'
Curtis is among those pushing to preserve some of those policies, particularly those dealing with nuclear energy, net-zero emissions, battery storage and more. The first-term senator has long centered his climate policies on clean energy solutions, suggesting earlier this week he will push for those changes as the Senate considers the bill.
'We must build a thoughtful, principled bill that doesn't pull the rug out from under American innovators,' a spokesperson for Curtis told the Deseret News. 'Doing otherwise risks freezing investment, delaying domestic production, increasing costs, and forfeiting our energy edge and national security to China and Russia.'
Meanwhile, some senators — including Curtis's counterpart, Utah Sen. Mike Lee — have pushed to repeal all green energy tax credits passed under the Inflation Reduction Act.
'The government shouldn't use the tax code to pick winners and losers in the marketplace: Americans should choose what works for them,' Lee, who is chairman of the Senate Energy Committee, told the Deseret News. 'Right now, we're crafting a reconciliation bill that will create tens of thousands of jobs, while ensuring Utah families have reliable, affordable, and abundant energy.'
The Senate is set to vote on the reconciliation package in the coming weeks, with Republican leaders pushing to get the bill to Trump's desk before the Fourth of July.