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 grid’s reliability, and contributed to lower electricity 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(CRES) President Heather Reams reacted in a statement, “While we are disappointed that energy tax credits were repealed and substantially cut in the package passed by the House, we are grateful for the champions who have fought to protect critical provisions that incentivize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, thereby 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 Utah.
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 Utah alone, they would lead to $33 billion in spending and grow the state’s economy by $17 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.
Energy Innovation’s May 2025 report estimated that the House reconciliation bill could 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.
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On the other hand, the country would experience a renaissance in energy and manufacturing jobs if the clean energy tax credits are maintained. 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 11,500 total jobs per year would be created in Utah alone.
According to data from the Clean Economy Tracker, many clean energy manufacturing companies setting up shop in Utah have already committed to creating more than 3,000 jobs. For example, Revkor Energy Holdings and H2 Gemini Technology Consulting in 2023 announced a partnership to construct a solar cell and module manufacturing facility in Salt Lake City. Despite the companies’ goal of “position[ing] the United States as the premier center for renewable energy, solar technology… and reclaiming our position at the forefront of the renewables industry,” those 2,500 associated roles are now at risk of not being filled. The same is true of the 200 full-time positions that were going to support Nucor Corporation’s recently announced $200 million utility infrastructure production facility in Brigham City, which President and CEO Leon Topalian said “positions us to meet the region’s growing energy infrastructure needs.”
Construction and operations roles at energy generation facilities are also threatened, as is the property tax revenue they would contribute to local communities. Fervo Energy’s Cape Station geothermal project in Beaver County, which broke ground in 2023 and is expected to reach full-scale production in 2028, has been supporting 6,600 jobs during construction and would support 160 full-time operational roles, for a total payroll impact of $437 million. It would contribute $1.1 billion to supply chains and local businesses.
In September, Utah Governor Spencer Cox attended the groundbreaking of rPlus Energies’ Green River Energy Center, a solar-and-storage project in Eastern Utah, that has supported about 500 local jobs. “This project is being built in rural Utah, by rural Utahns, and for all of Utah. When rural Utah thrives, the entire state prospers,” reflected Gov. Cox.
This year, Clearway Energy Group began building its Honeycomb battery energy storage system portfolio, which it estimates will create 50 local jobs, with apprentices contributing 15% of total worked hours. It would also generate $60 million in property and sales taxes. U.S. Senator John Curtis (R-UT) reacted, “By expanding battery storage capacity right here in our state, Clearway Energy Group is driving solutions that strengthen both our economy and our environment.”
Photo Courtesy Nucor
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 $5 billion in total additional income for Utahns; however, if they are stripped away, Utahns 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 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 or 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 Clearway Energy Group
Moreover, polling indicates that most Utahns are in favor of clean energy. Peak Insights found that modernizing the electric grid is universally popular in the state, with 89% of Utahns in approval and 61% in strong approval. The issue is especially supported by Republican primary voters, with 91% approval. 79% of Utahns approve energy efficiency upgrades, 73% approve cutting red tape, and 64% approve increasing mineral production, with more than one-third of voters strongly supporting each of those three issues.
As the polling shows, there is widespread support for the tax credits in the state. In an opinion piece published in the Times-Independent, Kitty Calhoun, a professional mountain climber from Moab, wrote, “With over $12 billion in new investments and thousands of jobs created, our state is proving that clean energy isn’t just good for the environment — it’s a driver of economic growth. The clean energy tax credits from the Inflation Reduction Act seem uniquely aimed at helping rural communities like those up and down eastern Utah.” In another opinion piece published in the Deseret News, A. Scott Anderson, chairman of the Zions Bank Advisory Board, Derek Miller, president and CEO of the Salt Lake Chamber, and Christian Gardner, CEO and chairman of the Gardner Group, wrote, “As policymakers consider changes to the Inflation Reduction Act, we urge them to take a careful, surgical approach. A whiplash policy environment that swings between support and uncertainty makes long-term capital planning nearly impossible. If we want to maintain our leadership in the global energy race, we need consistency.” Both legislative chambers must pass identical bills deciding the fate of these credits before the package can be sent to the President’s desk.
Sen. Curtis has long supported the clean energy industry. He recently posted on X in favor of an all-of-the-above energy approach: “The question isn’t renewables or non-renewables. It’s not fossil fuels or no fossil fuels. The real question is this: Will it be the United States, or will it be someone else? This Administration gets it—America must lead the world in affordable, reliable, and clean energy.” In April, he joined other legislators in a letter to Sen. John Thune (R-SD), the majority leader, advocating for the clean energy incentives. As they discussed in the letter, an all-of-the-above energy approach is vital to American prosperity and national security, and it aligns with both conservative values and the goals of the Trump administration.
The senators explained their hesitance to rip the rug out from the American businesses that have already relied on the tax credits to make substantial investments in expanding their domestic energy production or manufacturing presence: “A wholesale repeal, or the termination of certain individual credits, would create uncertainty, jeopardizing capital allocation, long-term project planning, and job creation in the energy sector and across our broader economy.” The senators also highlighted their unwillingness to place added hardship on American families: “Given rising energy demand, it is imperative that any modifications to the tax code avoid worsening the economic pressures that American households and businesses already face. For energy credits that provide a direct passthrough benefit to ratepayers, repeals would translate into immediate utility bill increases, placing additional strain on hardworking Americans.”
Utahns have recognized Sen. Curtis’s efforts to support the clean energy investments. In an opinion piece published in the Deseret News reacting to the letter, Melarie Wheat from Draper, Utah wrote, “His recognition of the need to support both traditional and renewable energy sources while maintaining the stability necessary for innovation and investment reflects a thoughtful and principled approach to policy… I am grateful for Senator Curtis’s leadership and encourage continued bipartisan support for responsible energy development and meaningful climate solutions.”
