This legislative ask is designed to be shared with your members of Congress and their staff.

After staying steady for nearly 20 years, U.S. electricity demand is projected to rapidly increase through the end of the decade. To meet this need and enhance resilience against natural disasters, the Department of Energy estimates the U.S. must double the size of its power grid in the next decade – a challenge requiring robust investments in affordable, renewable energy sources. Without increasing the amount of electricity on the power grid, prices will rise for consumers and businesses, jeopardizing further economic growth.  

New Clean Energy Projects are Creating Jobs and Investment Across the Country

More than 400,000 new clean energy jobs announced. 
Over $422 billion in investments announced across 48 states and Puerto Rico.

The clean energy tax credits passed under the Inflation Reduction Act (IRA) (P.L. 117-169) are essential for supporting this transition and meeting the power requirements of a growing economy, including a U.S. manufacturing revival, building and transportation electrification, AI technology, and next-generation data centers. Before the IRA, these credits’ predecessors enjoyed long-standing bipartisan support for their benefits to communities around the country. 

Recent research has shown the threats to the U.S. economy posed by repealing the IRA’s energy tax credits, including: 

  1. $336 billion in less investment over the next 15 years; 
  2. 97,000 fewer American energy jobs created; and 
  3. An average 10% increase in electricity bills, while 34% of American households already report struggling to afford their power bills. 

We urge Congress to oppose the repeal of Inflation Reduction Act investments in affordable clean energy, American jobs, and economic development in the upcoming budget reconciliation bill. Specifically, we call for the continued authorization of the following tax credits: 

  • Energy Investment Tax Credit (IRC Sec. 48E): Lowers the cost of building clean energy infrastructure. 
  • Production Tax Credit (IRC Sec. 45Y): Provides credits per kilowatt-hour of clean energy. 
  • Advanced Manufacturing Tax Credit (IRC Sec. 45X): Lowers the cost of making solar, wind, and battery components as well as producing power inverters and critical minerals. 
  • Electric Vehicle Tax Credits (IRC Sec. 30D and Sec. 25E): Sec. 30D provides up to $7,500 for qualified new EV purchases. Sec. 25E provides up to $4,000 for pre-owned EVs. 
  • Residential Clean Energy and Energy Efficiency Tax Credits (IRC Sec. 25D and Sec. 25C): Sec. 25D lowers the cost of home projects like rooftop solar, battery storage, or geothermal heat pump installation. Sec. 25C lowers the costs of projects like home weatherization, heat pump installation, or electric water heater installation. 

Contact: Daren Caughron, Legislative Manager, Sustainable Energy & Environment Program, dcaughron@fcnl.org