Today, the U.S. House of Representatives passed that controversial budget bill, #HR3070. This legislation would make sweeping and long-overdue improvements to the clean energy tax credits and establish a new expiration date of 2028 for renewable energy projects. The bill increases scrutiny over tax credits used for any projects connected with or using materials from Chinese firms. This regulatory shift comes amid increasing focus by national security officials on the clean energy supply chain. Bill supporters are pushing the narrative that this extends President Donald Trump’s economic plans to indicators that matter. Critics warn that it would dramatically threaten the booming clean energy economy.
If passed, the Inflation Reduction Act will move up the expiration date for clean electricity tax credits for new wind, solar, and battery storage projects. It would create an unwaivable 60-day deadline for beginning construction after the bill is approved. This new timeframe is a problem for many projects that rely on long permitting timelines and planning stages. Consequently, it could end up delaying the nation’s momentum in the clean energy transition.
The U.S. is experiencing its first growth in electricity demand in two decades. This boom, driven almost exclusively by new breakthroughs in artificial intelligence, would be monumental for the legislation, with far reaching consequences. Opponents are cautioning that the legislation puts the country’s competitive advantage in the global race for new energy technologies at risk. This worry is increasingly urgent, as China’s stranglehold over the clean energy supply chain grows.
In fact, over two dozen Republican House members co-sponsored the bill. In return, their districts have seen the positive returns of clean energy investments. Clean energy advocates have expressed disappointment, fearing that it could lead to significant job losses and curtail investments in renewable energy.
“This isn’t a scalpel, it’s a meat cleaver, and it will hurt us all.” – Heather O’Neill, Advanced Energy United president
Abigail Ross Hopper, president and CEO of the Solar Energy Industries Association, said she was alarmed and disappointed. She cautioned that if Congress doesn’t wake up, this legislation would kill an economic boom that has ignited a spectacular American manufacturing renaissance. She continued, lamenting that the bill puts at risk recent advancements made in reducing electric bills and growing jobs.
Furthermore, Michael Carr, executive director of the Solar Energy Manufacturers for America Coalition, criticized the bill’s implications for domestic manufacturing jobs: “Despite many reassurances that members support domestic manufacturing, a vote for this bill was a vote to close US factories and concede manufacturing jobs of the most important energy resource of the 21st century to China.”
As part of a broader energy strategy, President Trump is expected to sign executive orders as early as May 23, 2025, aimed at revitalizing the nuclear energy sector. These orders will apparently streamline regulatory approval processes for new reactors and fortify fuel supply chains. Critics say that such moves can only make an already hostile environment for renewable energy projects even worse.
