Latest news with #taxCredits
Fox News
6 hours ago
- Business
- Fox News
Educational Choice for Children Act: A tax break for the rich, not a lifeline for students
Like many Americans this summer, I'll be heading to a football stadium to see Beyoncé deliver two hours of magic on her Cowboy Carter Tour. I paid a premium for those tickets – and I'm OK with that. It was my choice – not something I can deduct from my taxes or expect to be federally subsidized. That's the way it should be. The same goes for my guilty pleasure: "Keeping Up With the Kardashians." I don't mind watching the antics of one of America's most famous (and wealthiest) families, but I'd never ask taxpayers to help fund their children's private school tuition. And yet, some in Congress think that's precisely what we should do. A proposal quietly tucked into the House GOP's reconciliation package, part of what's being marketed as President Donald Trump's "Big, Beautiful Bill," would give wealthy individuals and corporations a 100% federal tax credit for donations to private school scholarship funds. This proposal – the Educational Choice for Children Act (ECCA) – effectively allows wealthy donors to turn tuition into a tax write-off. That's right. This plan, currently before the U.S. Senate, would allow billionaires to "donate" to their kids' private schools – and then receive every cent back in tax relief, at the expense of American taxpayers. This is not a small-dollar program. The measure could siphon more than $10 billion away from federal revenues, funds that could otherwise strengthen our nation's public schools. Now, I don't think Blue Ivy Carter or North West needs our help getting into elite institutions. However, the backers of this bill, such as House Republican Conference Chairwoman Elise Stefanik, have argued that it's primarily about helping working-class students escape "low-performing" schools. "It will encourage more individuals and businesses to invest in our children's futures," Stefanik said, "by establishing a 75% federal tax credit for qualified charitable contributions made to nonprofit schools with proven success." That sounds good – until you look at the evidence. In practice, measures like ECCA have the opposite effect. Instead of helping students in underfunded schools, they divert public dollars to families who already have access to private education. We've seen it happen in more than 20 states, where private schools receive more than $1 billion each year through similar tax credits, according to the Institute on Taxation and Economic Policy. A 2023 report in St. Louis Today revealed that most students receiving vouchers in Missouri were already attending private schools, while only 35% came from public schools. In other words, this isn't about opportunity. It's about entitlement. Every year, public schools educate nearly 50 million students – more than 90% of the nation's children. These taxpayer-funded institutions have produced extraordinary alumni, including the CEOs of Apple, Walmart and the majority of Fortune 500 companies. Public schools are where kids learn how to live and work in a diverse democracy. They're not perfect, but they are essential. Educators know this better than anyone. A 2024 Pew Research Center survey of more than 2,300 public school teachers found that most feel underpaid, under-supported and under-resourced. Respondents also reported a deep commitment to their students and their profession. More than half of these educators said they wished the public understood the difficulty of their job. Teachers across the U.S. are clear: students don't need more "choice" – they need more investment. As one Kentucky educator told the Louisville Courier Journal earlier this year, "If lawmakers actually stepped into our classrooms, they'd see what we're doing with so little. Give us more counselors, working air conditioning, and reading specialists – don't hand tax breaks to people who already have advantages." These educators are on the front lines. They're not asking for handouts. They're asking for fairness – and for policies that reflect the real needs of public school communities. It's worth noting that the original pitch behind voucher programs – dating back to the early 2000s – was to help low-income families in struggling urban districts. But decades of research have shown that voucher students don't perform significantly better in reading or math than their public school peers. Meanwhile, the programs have drained resources from the very schools most in need of help. That's not reform. That's abandonment. The concept of "school choice" has become a catch-all for undermining public education without explicitly stating so. But make no mistake: this is a wealth transfer in disguise, and ECCA is its latest vehicle. As a son of immigrants and a proud product of public schools, I know firsthand what public education can offer. I've seen how classrooms can unlock potential and teachers can change lives. I've also seen what happens when we neglect those systems and call it innovation. This isn't just bad policy. It's a betrayal of the American promise. Let's be clear: families have every right to choose private or religious schools for their children. But they shouldn't expect the rest of us to foot the bill. Tax dollars should be allocated where the need is greatest – schools that serve all students, regardless of their ZIP code, income or background. At a time when the country feels increasingly divided, our public schools are one of the few places where kids from every walk of life still come together. That's something worth protecting, not defunding. Or, to borrow a phrase from Queen Bey herself, what's happening with this bill is more than just a bad idea. It's a requiem for the American ideal. Let's not let it play out.
Wall Street Journal
22-05-2025
- Business
- Wall Street Journal
Rooftop Solar Takes Gut Punch in House Tax Bill
The struggling rooftop solar industry faces a potentially fatal blow after the House of Representatives passed a tougher version of President Trump's expansive tax-and-spending package. The bill sunsets renewable energy credits, as expected, but includes more stringent provisions and rollback dates that were seen as especially bleak for rooftop solar. Credits for rooftop solar would end this year, while those for larger solar and wind energy projects would end by 2028, instead of a slower phaseout through 2031.
The Verge
22-05-2025
- Business
- The Verge
House GOP moves to slash renewable energy tax breaks
House Republicans advanced a sweeping spending package that would roll back Biden-era tax credits for renewable energy projects. If the bill passes the Senate and makes it to President Donald Trump's desk to sign, it could deal a serious blow to renewables, new nuclear technologies, and clean energy manufacturing across the US. The rollbacks would undo much of the 2022 Inflation Reduction Act (IRA), which Democrats touted as the biggest investment in climate and clean energy initiatives. Losing these tax credits would slow efforts to build out enough new energy sources to meet rising electricity demand, as well as previous commitments the US has made on the international stage to help stop the climate crisis. 'This package is really economic malpractice,' says Brad Townsend, vice president for policy and outreach at the Center for Climate and Energy Solutions (C2ES). The bill that the House ultimately passed was even harsher on clean energy than a draft released last week. 'The original version was bad. This version is worse.' 'This package is really economic malpractice.' Based on the previous draft, C2ES and research firm Greenline Insights estimated that restrictions on which projects would be eligible for tax credits would cost hundreds of billions of dollars in lost GDP. An updated bill released overnight and passed early this morning could lead to even larger losses if the Senate ultimately passes it as-is. Notably, the bill stipulates that projects must start construction within 60 days of it being enacted and placed in service by the end of 2028 in order to qualify for clean energy tax credits. That would effectively make it impossible for new projects to qualify, given the long lead times needed to secure permits and financing before starting construction. During remarks on the Senate floor this morning, Senate Minority Leader Chuck Schumer (D-NY) called the provision a ' clean job kill switch.' 'It's one of the most devastating things added at the last minute in this bill snuck in the dark of night. And we in the Senate — and I hope our Republican colleagues will join us in this — are going to fight this every step of the way,' he said. Nearly 977,000 jobs and $177 billion in GDP would have been lost as a result of requirements in the previous draft that stipulated that projects be placed in service by 2029 to qualify for credits, according to C2ES and Greenline Insights. Again, that draft was less stringent than the text that ultimately passed. The bill seemingly includes a carveout for nuclear energy industry, to which some GOP members, including Secretary of Energy Chris Wright, have ties. Wright dialed into a meeting with Republican lawmakers on Wednesday night to discuss the tax credits, Politico reported. The bill subsequently says that new nuclear reactors would only have to commence construction by 2028 in order to qualify. But even though the provisions aren't as strict for new nuclear projects to qualify, the bill still sets unrealistic goals. Next-generation nuclear reactors aren't expected to be ready to deploy commercially until the 2030s. The bill also ends an IRA policy that allowed renewable projects to transfer credits to one another, dealing another economic blow to developers outside of nuclear energy. It disqualifies projects owned by or receiving 'material assistance from prohibited foreign entities.' Those restrictions are essentially unworkable, according to clean energy advocates and industry experts — considering that clean energy supply chains are still concentrated in China and that it could bar developers with investors from other countries. Restrictions on the involvement of foreign entities alone could lead to $237 billion in lost GDP, Greenline Insights and C2ES previously estimated. Ironically, Republican districts stood to benefit the most from IRA incentives for new solar and wind farms and factories. Investments were concentrated in rural areas, and 73 percent of manufacturing facilities for clean power components are in red states, according to a recent industry report from the American Clean Power Association. 'Texas in particular is going to be hammered by the package as written,' Townsend says. His organization's analysis found that Texas would lose the most jobs — more than 170,000 — from tax credit restrictions initially proposed in the bill. 'Texas in particular is going to be hammered.' Fortunately, solar and wind power are already cheaper sources of electricity than fossil fuels in many cases and have been making steady gains in the US for decades thanks to falling costs. To be sure, developers now have to contend with new challenges posed by Trump's tariff regime. But the industry has managed to make progress — now providing more than 20 percent of the US electricity mix — despite years of on-again, off-again credits prior to the IRA codifying incentives in a way that offered more long-term certainty for the industry. What the tax credits in the IRA were supposed to help accomplish, however, was a dramatic ramp-up of carbon-free energy needed to stop the climate crisis. The IRA was expected to slash US greenhouse gas emissions by roughly 40 percent from peak levels by the end of the decade, according to independent analyses. That nearly got the nation to the goal that former President Joe Biden committed to under the 2015 Paris Agreement, which was cutting pollution by at least 50 percent by 2030. And since the US is responsible for more greenhouse gas emissions historically than any other country, the decisions that Congress makes now have consequences for the planet. Trump, of course, has called climate change a hoax despite mountains of evidence showing how emissions from fossil fuels exacerbate floods, storms, droughts, fires, and other climate disasters. Aside from worsening weather events putting pressure on the US' aging power grid, the country is also grappling with a sudden rise in electricity demand from new AI data centers, crypto mining, electric vehicles, and increased domestic manufacturing. Electricity demand could grow by 25 percent by 2030, according to one forecast published this week by consulting firm ICF. By slowing the deployment of clean energy, the repeal of IRA incentives would lead to more pollution and raise household energy costs by up to 7 percent by 2035, according to a recent analysis by research firm Rhodium Group. The Senate now has to wrangle with the entirety of Trump's so-called 'big, beautiful bill.' It also includes proposals to extend and expand income tax cuts, increase military spending, fund mass deportations, impose new restrictions on Medicaid and food assistance programs, and more. Even though the Republican-controlled Senate is likely to fall in line with Trump's agenda, there's still time for proposals in the bill to evolve. In its current version, 'Americans' electric bills will soar. Hundreds of factories will close. Hundreds of billions of dollars in local investments will vanish. Hundreds of thousands of people will lose their jobs,' Abigail Ross Hopper, president and CEO of the Solar Energy Industries Association (SEIA), said in a press statement. But, Hopper added, 'it's not too late for Congress to get this right. The solar and [energy] storage industry is ready to get to work with the US Senate on a more thoughtful and measured approach.'
Globe and Mail
22-05-2025
- Business
- Globe and Mail
Solar stocks plummet after Trump's tax bill advances in U.S House
Shares of U.S. solar companies fell sharply on Thursday after the House of Representatives advanced President Donald Trump's sweeping tax and spending bill, which may end numerous green-energy subsidies that have supported the renewable energy sector. Sunrun (RUN-Q) led the market rout, with shares falling nearly 41% in early morning trade, SolarEdge Technologies (SEDG-Q) slid nearly 26%, Enphase Energy (ENPH-Q) was down 17.7% and Complete Solaria (SPWR-Q) fell over 15%. Shares of Maxeon Solar (MAXN-Q) fell 9%, Emeren Group (SOL-N) was down 5.2%, JinkoSolar (JKS-N) dipped 4.7%, while First Solar (FSLR-Q) and Canadian Solar (CSIQ-Q) dropped 5.4% and 6.4%, respectively. Trump's budget package - which he calls 'one big beautiful bill' - would eliminate funding established under the Biden Administration's Inflation Reduction Act and repeal grants intended to reduce air pollution, greenhouse gas emissions or purchase electric heavy-duty vehicles. The bill would remove the 30% federal tax credit for taxpayers who install solar rooftop systems, posing a significant challenge to the industry. While the industry was already anticipating the gradual phase-out of wind and solar tax credits, the new version of the bill accelerates this timeline, Raymond James analyst Pavel Molchanov told Reuters. As per the new proposed timeline, solar or wind projects must begin construction within 60 days of the bill's enactment and finish construction by year-end 2028. Otherwise, they will no longer be eligible for tax credits. Clean energy stakeholders now turn their attention to the Senate, where the bill is headed next before it is sent to the president, hoping it will reverse many of the proposed revisions to the IRA. 'While the bill is in the Senate, the solar and wind industries will actively lobby to reverse the new changes made by the House,' Molchanov added. Be smart with your money. Get the latest investing insights delivered right to your inbox three times a week, with the Globe Investor newsletter. Sign up today.
Reuters
22-05-2025
- Business
- Reuters
Solar stocks plummet after Trump's tax bill advances in US House
May 22 (Reuters) - Shares of U.S. solar companies fell sharply in premarket trade on Thursday after the House of Representatives advanced President Donald Trump's sweeping tax and spending bill, which may end numerous green-energy subsidies that have supported the renewable energy sector. Sunrun (RUN.O), opens new tab led the market rout, with shares falling as much as 33%, Complete Solaria (SPWR.O), opens new tab fell nearly 22% while Enphase Energy (ENPH.O), opens new tab, Maxeon Solar (MAXN.O), opens new tab and SolarEdge Technologies (SEDG.O), opens new tab dipped between 10% and 15.6%. Shares of JinkoSolar (JKS.N), opens new tab fell 2.3%, while First Solar (FSLR.O), opens new tab and Canadian Solar (CSIQ.O), opens new tab dropped 6.5% and 10%, respectively. Trump's budget package - which he calls "one big beautiful bill" - would eliminate funding established under the Biden Administration's Inflation Reduction Act and repeal grants intended to reduce air pollution, greenhouse gas emissions or purchase electric heavy-duty vehicles. The bill would remove the 30% federal tax credit for taxpayers who install solar rooftop systems, posing a significant challenge to the industry. While the industry anticipated the gradual phase-out of wind and solar tax credits, the new version of the bill accelerates this timeline, Raymond James analyst Pavel Molchanov told Reuters. As per the new proposed timeline, solar or wind projects must begin construction within 60 days of the bill's enactment and finish construction by year-end 2028. Otherwise, they will no longer be eligible for tax credits. Clean energy stakeholders now turn their attention to the Senate, where the bill is headed next before it is sent to the president, hoping it will reverse many of the proposed revisions to the IRA. "While the bill is in the Senate, the solar and wind industries will actively lobby to reverse the new changes made by the House," Molchanov added.
