The budget reconciliation process enables Congress to quickly consider and advance fiscal legislation, with topics spanning the country’s revenues, spending, federal debt limit, and the budgetary surplus or deficit. Throughout this process, the clean energy tax credits, which have created jobs, spurred local investment, bolstered the electrical grid’s reliability, and contributed to lower energy prices for Americans, were front and center in the committee meetings, where legislators placed them on the metaphorical chopping block.
In the early hours of the morning on Wednesday, May 21, the U.S. House narrowly pushed through the reconciliation bill with a 215-214 vote, where unfortunately, the House has taken a sledgehammer to these vital energy incentives. Citizens for Responsible Energy Solutions (CRES) President Heather Reams reacted in a statement, “While we are disappointed that energy tax credits were repealed and substantially cut in the package passed by the House, we are grateful for the champions who have fought to protect critical provisions that incentivize investment and economic growth. As the bill progresses to the Senate, we hope changes will be made to address and protect these important tax credits, which are working to secure American energy dominance. Without these provisions, the United States is at risk of falling behind adversarial nations in the global energy race—not to mention, American jobs and local economies will suffer a tremendous loss.”
Under the House version, clean energy projects would need to start construction within 60 days of the bill’s passage, have completely China-free supply chains by January 1, and start operating by 2029 to benefit from the Section 45Y production credit or the Section 48E investment credit, both of which would start being phased out in 2029, thus creating a nearly impossible-to-meet timeline. Other tax credits, such as those used to bolster residential energy efficiency or purchase clean vehicles, would be eliminated outright after this year. If passed by the Senate and signed by the President, the legislation threatens to unwind an incredible amount of investment and energy development across the country, particularly in South Carolina.
Domestic investment is at risk and must be protected to help create a stronger national economy with direct benefits for local communities. A report commissioned by the American Clean Power Association (ACP) and conducted by ICF at the end of 2024, found that between 2025 and 2035, there would be $3.8 trillion in net spending across the American economy due to the tax credits, with a more than fourfold return on taxpayer investment. The energy incentives would ultimately grow the American economy by contributing $1.9 trillion to the national GDP. In South Carolina alone, they would lead to $64 billion in spending and grow the state’s economy by $32 billion.
Since 2022, these tax credits have already spurred $321 billion in investment across the country in clean energy projects and the construction of new industrial and manufacturing facilities, 2,369 of which have since opened their doors for business. The Clean Investment Monitor’s May 2025 report adds that $522 billion in investment remains to be spent on construction and installation at such factories, with 2,217 more plants yet to be built that will support even more American jobs.
Unfortunately, Energy Innovation’s May 2025 report estimated that the House reconciliation bill will undercut many of these 7,000 existing and planned projects. The uncertainty regarding federal support for clean energy between January and March of this year has already cost $6.9 billion due to project cancellations, and a significant portion of the planned $522 billion in investment may never come to fruition. The organization calculates that during the reconciliation window from 2026 to 2034, eliminating these incentives will cause the cumulative national GDP to decrease by almost $1.1 trillion. The report also says the bill will cost the country more than 830,000 jobs in 2030 and nearly 720,000 jobs in 2035.
Photo Courtesy American Battery Technology Company
On the other hand, if the clean energy tax credits are maintained, the country would experience a renaissance in energy and manufacturing jobs. ACP and ICF report that over the next decade, these incentives would create 13.7 million jobs in total, or about 1.2 million jobs per year on average, ranging from over 600,000 in 2025 to nearly 1.5 million in 2032. About 19,900 total jobs per year would be created in South Carolina alone.
According to data from the Clean Economy Tracker, many clean energy manufacturing companies setting up shop in South Carolina have committed to or have already created more than 18,000 jobs, over 90% of which were announced since the passage of the clean energy incentives in 2022. For example, at the end of that year, AESC announced an $810 million investment in an electric vehicle battery Gigafactory in Florence, which would bring 1,170 jobs to Florence County. It has since announced an $810 million first expansion that would add another 450 jobs. However, in February, it had to pause a planned $1.5 billion second facility that would have created an additional 1,080 jobs.
In 2022, Enphase Energy announced it would invest $20 million in contract manufacturer Flex’s solar inverter production plant in Columbia, creating 600 jobs, and Redwood Materials announced it would invest $3.5 billion in a Battery Materials Campus near Charleston, creating over 1,500 jobs in Berkeley County. In 2023, Scout Motors announced a $2 billion investment in an electric vehicle production plant in Blythewood that would bring at least 4,000 jobs to Richland County, while Silfab Solar announced a $150 million investment in a solar panel manufacturing facility in Fort Mill that would bring 800 jobs to York County. In 2024, Enersys announced it would spend $500 million to build a lithium-ion cell gigafactory and create 500 jobs in Greenville, and American Battery Technology Co. announced it would use a $150 million federal grant to build a lithium-ion battery recycling facility that would create 1,200 construction jobs and 300 operations jobs. This year, Eaton announced a $340 million commitment to building a three-phase transformer production plant in Jonesville, bringing 700 jobs to Union County, and TS Conductor announced a $134 million commitment to constructing an advanced conductor manufacturing facility in Clarius Park Hardeeville, bringing 462 jobs to Jasper County. ES Foundry also opened a new solar cell factory that will bring 500 jobs to Greenwood County and will support the solar industry’s expansion to 3,315 permanent jobs and $260.9 million in annual labor income by 2035, while Boviet Solar is also exceeding original projections, and rather than 900 new jobs as part of their new manufacturing facility in Greenville, they now expect to create 1,300 new jobs.
Construction and operations roles at energy generation facilities are also threatened, as is the property tax revenue they would contribute to local communities. Bolt Solar LLC, a North Carolina-based company, is placing solar panels in Greenville, which is expected to generate $200,000 in tax revenue each year, compared to the roughly $800 the empty lot is generating now. Silicon Ranch is investing $260 million in its Lambert Solar project, which will create more than 400 jobs with a particular emphasis on former employees of International Paper, whose mill in the area shut down last year. The project will also generate more than $20 million in tax revenue for Georgetown County over forty years. The Nuclear Company is set to create 100 new construction jobs at an engineering and construction office in Richland County as it prepares to deploy a fleet of nuclear reactors, while Santee Cooper is considering reviving and expanding the shuttered V.C. Summer Nuclear Station.
Photo Courtesy Silicon Ranch Corporation
ACP and ICF note that investments resulting from the clean energy tax credits would add $846 billion to disposable household income in the next decade, or nearly $77 billion per year, providing $14 billion in total additional income for South Carolinians; however, if they are stripped away, South Carolinians and Americans will feel more economic pain. Rhodium Group estimates that American energy costs could increase by as much as 7% by 2035, up to $290 more per year, which will translate into an increase in cumulative annual energy costs of more than $16 billion in 2030 and more than $33 billion by 2035.
The increase would be due to the loss of new generation capacity, with 57% to 72% less new clean capacity expected to be installed on the grid over the coming decade, and higher costs for fossil fuels. This comes at a time when the country’s electricity demand forecast is set to increase from 2.8% to 15.8% by 2029, mainly driven by the demands of data centers and domestic industrial facilities. Without support for renewables, we cannot meet Americans’ energy demand, nor can we maintain our energy independence and dominance. The House reconciliation bill would cut out the clean energy sector at a time when Americans’ electricity needs are higher than ever and when the country needs every tool in its energy tool belt.
Photo Courtesy Santee Cooper
Moreover, polling indicates that most South Carolinians, particularly conservative voters, are in favor of clean energy. A recent study from Sustain South Carolina found that 93% of South Carolinian Republicans and conservative Independents believe it is important for the state to have a diverse range of energy sources and a stable and resilient power grid. 77% believe recent clean energy projects will benefit South Carolina, and 66% say the federal government should continue to support these projects. Another poll jointly released by The Nature Conservancy and Sustain South Carolina found that 73% of Republican and conservative Independent voters agree that it is important to invest in clean energy and believe the state should increase its dependence on diverse energy sources, including biomass, hydrogen, nuclear, and solar.
As the polling shows, there is widespread support for clean energy and the tax incentives in the state. In an op-ed published in the Chronicle-Independent, a representative of the American Conservation Coalition wrote, “Our energy future will depend on an array of energy sources, from nuclear to natural gas to hydroelectric power. Whenever we have clean, reliable electrons ready to be transmitted to the power grid, we should leap at the opportunity… As a lifelong South Carolinian, I could not be prouder of my state for stepping up to diversify our energy portfolio and pursue innovative solutions. With strong leadership, we can continue to be a model for the rest of the nation.”
In a letter to the editor published in The State, Frank Knapp, president and CEO of the South Carolina Small Business Chamber of Commerce, commented on how even local energy incentives have benefited the state: “State law now provides significant tax credits for solar and requires utility companies to promote and use alternative energy. This is resulting in utilities purchasing electricity from solar farms and paying consumers well for putting building-generated solar energy on the grid. I recently put solar panels on my commercial building, saving 23 percent on my electric bill with an anticipated payoff after just four years.” He added that South Carolina’s promotion of alternative energy “won’t crush our economy. It will help it grow as a result of the investments and new jobs created.”
Also in a letter to the editor in The State, John Milko from Charleston wrote, “Since the passage of the Inflation Reduction Act, South Carolina ranks second among all states in clean energy manufacturing investment, with over 27 project announcements bringing $15 billion and 14,000 new jobs to our state. Regardless of your views on climate change, it’s political and economic malpractice to put these projects, and the jobs they provide, in jeopardy.” Both legislative chambers must pass identical bills deciding the fate of the federal energy tax credits before the package can be sent to the President’s desk.
Sen. Graham has long supported clean energy, especially nuclear, as part of an “all of the above” energy approach. After the cancellation of the state’s beleaguered V.C. Summer nuclear project in the state in 2017, he said, “Revitalizing the nuclear industry is a priority to me. Twenty percent of our power comes from nuclear power plants. They are all old and they’re aging. I would like to build new ones all over the country.” In a speech the following year, he advocated for a South Carolina “nuclear renaissance,” commenting, “We’re going to do more, not less, on the nuclear side.”
V.C. Summer is back in the news after Santee Cooper received a massive response to its request for expressions of interest in the two partially constructed units at the station, and Governor Henry McMaster has urged the state’s Congressional delegation to maintain tax credits and federal loans for nuclear projects.
Sen. Graham has also voiced support for the solar industry and the jobs it creates. In a 2018 letter advocating for the exemption of specific solar modules from a tariff, sent to U.S. Trade Representative Robert Lighthizer, Energy Secretary Rick Perry, and Commerce Secretary Wilbur Ross, he and seven other Republican senators wrote, “Solar manufacturing jobs have surged 58% in the last 5 years… Alternative energy markets across the Southwest and West present additional opportunities for solar job growth as those states seek to diversify energy production sources… Building a skilled American workforce to meet the demand for solar technologies is essential to upholding the utility-scale market while the U.S. develops and integrates innovative, high-voltage technologies into our utility-scale solar sector.”
South Carolinians have recognized Sen. Lindsey Graham’s (R-SC) efforts to support clean energy investments, innovation, and jobs. In an opinion piece published in the South Carolina Daily Gazette, John Slipke, Greenville resident and former Lockheed Martin executive, wrote: “Tax credits such as the Advanced Manufacturing Production Credit and the Advanced Energy Production Credit fuel business growth in the Palmetto State… [Sen. Graham’s] leadership and advocacy for small modular reactors (SMRs) highlight the potential of modern nuclear technology to supplement traditional reactors and provide scalable, efficient energy solutions for our state. As Congress sets its legislative agenda, Graham and South Carolina’s delegation can prioritize continued support for policies that modernize the state’s energy infrastructure, revitalize manufacturing, and strengthen national security.”
