E2: Now Not Time to Raise Taxes on American-Made Energy, Manufacturing
WASHINGTON – The House Committee on Ways and Means introduced legislation—set to begin markup Tuesday— that would raise taxes on U.S. energy, rolling back critical clean energy tax credits that have driven more than $131 billion in private-sector investments into clean energy related projects and factories nationwide. About 400 large-scale clean energy projects have been announced since the tax credits were passed, which would create at least 110,000 new permanent jobs across the United States.
The following is a statement from Bob Keefe, executive director of the national nonpartisan business group E2 and author of the 2024 book about federal energy policy, Clean Economy NOW.
“These changes to clean energy tax credits will mean less manufacturing, less energy, less U.S. competitiveness and energy security and more costs for consumers.
“They inject unnecessary uncertainty into a growing sector that is driving the next great economic expansion. Businesses rely on policy stability to plan years in advance. This move would undercut the momentum we’ve built and stall progress just as we’re reaching critical milestones – threatening our ability to meet growing US energy demand and our ability to compete in the energy and auto sector globally.”
The following are statements by business leaders with projects and headquarters in districts represented by Ways and Means House members:
The following is a statement from Erik Lensch, CEO of Durham, N.C.-based Leyline Capital with projects in 15+ states including Texas, Utah, Arizona, and Kansas:
“Investors have mostly moved to the sidelines while Congress is creating so much uncertainty in our industry. At Leyline Capital, the developers that we lend to need market clarity to make decisions about how and where to make long-term capital investments. Weakening clean energy tax credits would send a chilling signal to investors that back solar and battery projects and make it harder to complete projects that are well into development. It’s not just about clean energy—it’s about maintaining America’s leadership in global innovation and energy. Abrupt policy reversals undermine confidence and could lead to job losses, higher costs, and stalled development.”
The following is a statement from Russ Bates, Founder, NXTGEN Clean Energy Solutions based outside Cleveland in Ohio’s 7th Congressional District:
“The proposed changes not only threaten the clean energy sector—they raise taxes on companies committed to building a more sustainable future. At NXTGEN Clean Energy Solutions, we’ve made significant capital investments based on the current framework. If that’s upended, the ripple effect across supply chains, financing, and hiring will be swift and severe.”
The following is a statement from Bill Caesar, President, Generate Upcycle based in upstate New York in the 22ndCongressional District:
“My company and countless others made investment decisions based on the presence of these tax credits. Stripping them away now will risk undermining successful American businesses, the people we employ and the communities where we operate. We need the United States government to be a reliable partner to American business. Tax credits for critical infrastructure have a long history of broad bi-partisan support and effectiveness. Changing that now would be an unforced error.”
The following is a statement from Michelle Knox, CEO, WindSolarUSA based in Springfield, Ill. with projects throughout Illinois’ 16th Congressional District:
“I’ve seen firsthand how the clean energy tax credits fuel local job creation, economic growth and reduce costs for families in central Illinois. These credits provide market certainty that allow businesses like WindSolarUSA to keep growing and serving our communities. We need the clean energy tax credits to continue through 2032 as planned to ensure long-term stability and opportunity in our region.”
The following is a statement from Anne Evens, CEO of Chicago-based Elevate with projects in central Illinois and the 16th Congressional District:
“Hardworking families across Illinois deserve the opportunity to thrive in healthier homes and benefit from reduced energy costs. Programs like the Building Performance Resource Hub, that can leverage critical federal tax credits are key to driving energy efficiency, supporting small contractors, and strengthening local economies across the Midwest. These efforts, whether in urban or rural parts of the country, represent smart, bipartisan investment in our future, delivering tangible benefits to families and businesses alike, while ensuring that no one is left behind.”
More resources to aid in your coverage:
- See E2’s clean energy factory and project tracker here with details on the nearly 375 major projects now planned across almost every state, including leaders Michigan, Georgia, South Carolina, North Carolina, Texas and Tennessee.
- See E2’s latest monthly Clean Economy Works report showing how clean energy project investments fell to their lowest level in January amid growing market uncertainty from Congress and the White House.
- See E2’s latest annual Clean Jobs America analysis and interactive map breaking down America’s 3.5 million clean energy jobs to the state and county levels—jobs that could be impacted by tax increases on clean energy companies and plans by the White House to stifle growth in wind, electric vehicles and other clean energy industries.
- See Clean Energy Buyers Association’s (CEBA) new report showing how repealing clean energy tax credits would increase average annual residential electricity bills by at least 7 percent ($110 per year) and raise business electricity bills by 10 percent.
- See E2’s economic impact analysis of 334 large-scale clean energy factory and projects announced by companies between August 2022 and August 2024, tracked by E2’s Clean Economy Works
For more details, please contact E2 Communications Director Michael Timberlake at mtimberlake@e2.org.
E2 is a national, nonpartisan group of business leaders, investors, and professionals from every sector of the economy who advocate for smart policies that are good for the economy and good for the environment. Our members have founded or funded more than 2,500 companies, created more than 600,000 jobs, and managed more than $100 billion in venture and private equity capital. For more information, see www.e2.org or follow us on X/Twitter at @e2org and Bluesky at @e2org.bsky.social.