Wednesday, February 19, 2025

Clean energy companies pressure US lawmakers to protect subsides

February 5, 2025

On Wednesday, U.S. clean energy companies will be heading to Capitol Hill to urge Republican legislators not to eliminate lucrative tax credits that are contained in the landmark climate change legislation of former president Joe Biden.

Members of Congress of both parties are being met by hundreds of representatives of firms from the solar, wind, and other renewable energy sectors to promote their role in creating employment and investment, as well as lowering electricity prices and meeting the soaring demand for power from data centers.

Republican areas have benefitted from the Biden administration's Inflation Reduction Act since its enactment in 2022, with more than half of announced clean-energy, battery and vehicle-manufacturing projects located in Republican congressional districts.

The clean-energy industry has nevertheless been on high alert ever since President Donald Trump was elected. His first executive orders prioritised unleashing U.S. coal-fuel production. They also halted federal wind-projects and frozen funding for clean energy projects under two Biden-era legislation.

Trump is aiming to reduce the IRA which includes billions of tax credits for the expansion and support of clean energy projects.

Some Republicans have proposed legislation to repeal certain parts of the bill. However, more than a dozen Republican House Members have asked party leaders to protect lucrative tax credit benefits to their districts.

To avoid having to rely on Democratic votes, the Republican-led Congress can use a legislative tool called reconciliation. Biden used this tactic when he passed the IRA.

Among the trade groups that are behind this lobbying effort is the Solar Energy Industries Association (SEIA), the Oceantic offshore wind group, and the U.S. Green Building Council.

The industry will meet with several Republicans that signed a letter last year to House Speaker Mike Johnson expressing their support for tax credit programs which have spurred investments in projects and factories. The letter was written by New York Representative Andrew Garbarino.

Over 1,800 companies signed letters to legislators urging them not to remove critical incentives. These include EDF Renewables (a French developer of clean energy projects), Sunnova, a residential solar company, and Qcells, the solar panel division of Hanwha, based in Korea.

In a letter sent to the leadership of Congress, dozens companies stated that they had relied on tax policies in order to plan investments, hire employees, and change product lines.

Business leaders acknowledge that the repeal of the law will force many to reduce staff or move their businesses abroad. (Reporting and editing by Stephen Coates; Nichola Groom).

(source: Reuters)

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