
A Republican-backed budget bill that rolls back clean energy incentives to pay for tax cuts could jeopardize nearly 300,000 jobs and some 287 solar and storage factories across the country, according to the Solar Energy Industries Association.
The bill passed out of the House Budget Committee over the weekend and will be considered by the House Rules Committee early Wednesday morning.
“If this proposal becomes law, nearly 300 U.S. factories — mostly in red states — could close or never open, and we simply won’t have the energy we need to power American innovation in AI and data centers,” SEIA president and CEO Abigail Ross Hopper said in a statement Tuesday.
SEIA’s analysis urged supporters to join the group in lobbying their representatives against the bill, saying the current version of it “could trigger an immediate decline in solar and storage investments. By 2030, up to $220 billion in investment could be lost.” The group also estimated an increase of $51 billion in consumer electricity costs.
The bill would set earlier phaseouts to several credits that have been boosting the solar and storage industries: The 25D residential energy credit would be phased out after 2025; the 48E clean electricity investment credit would be phased out after 2028; and the 45X advanced manufacturing production credit would be fully phased out after 2031.
The “removal of 25D alone will result in a minimum of 75,000 [to] 85,000 fewer jobs by 2026 and up to 250,000 by 2028,” SEIA’s analysis said.
The analysis emphasized that the IRA’s incentives have generated manufacturing investment largely in districts that voted for President Trump, and cited support for their preservation from Republicans like former Federal Energy Regulatory Comission Chairman Neil Chatterjee and GOP lawmakers in the House and Senate who have appealed to leadership to preserve parts of the IRA.
The group quotes Chatterjee’s suggestion that Republicans “thread the needle” by “preserving smart energy policies like incentives for solar, storage.”
“Solar and storage are adding energy to the grid faster than all other sources combined,” SEIA said. “If Congress cuts these incentives, energy production will fall 145 TWh and America will not be able to meet demand, leading to blackouts and a surrender of the AI race.”