At the end of May, the U.S. House narrowly pushed through a budget and tax bill that took a sledgehammer to clean energy tax credits. These include the Section 45X Advanced Manufacturing Production Tax Credit, which encourages the domestic manufacturing of components for the clean energy supply chain, the Section 30D Clean Vehicle Tax Credit, which connects consumers with lower costs for electric vehicles if their battery components are produced or sourced domestically, the Section 45Y Clean Electricity Production Credit and Section 48E Clean Electricity Investment Credit, which benefit solar and wind projects, and the Section 25D Residential Clean Energy Property Credit, which helps households install solar and other technologies to lower their electricity bills. The Clean Economy Tracker has collected data about what the House reconciliation bill would mean for Utah if passed in its current form.
Section 45 X and Section 30D
Utah’s manufacturing sector grew 12% between 2019 and 2023, demonstrating the fastest rate in the country. Several clean energy industries have contributed to this trend. Since 2022, Utah has welcomed more than $742 million in clean manufacturing investments and created 3,082 associated jobs. For example, Anson Resources is building a $495 million lithium carbonate development facility in Paradox Basin. Revkor and H2 Gemini announced a solar cell and module manufacturing and research facility in Salt Lake City, which will create more than 2,500 jobs and expand the city’s manufacturing workforce by 4%. This year, Nucor Corporation announced it would invest $200 million in a utility structures manufacturing plant in Brigham City that will use domestically-made steel and create 200 full-time jobs.
These facilities would qualify for the manufacturing credit, and Anson Resource’s plant would help meet demand for domestically-sourced critical minerals spurred by the clean vehicle credit. However, the House reconciliation bill would phase out the Advanced Manufacturing Production Tax Credit for wind components after 2027 and all other components after 2031, and would repeal the Clean Vehicle Tax Credit after 2025. These projects may not proceed if the credits are scaled back, jeopardizing local job creation and community investments.
Photo Courtesy Nucor
Section 45Y and Section 48E
Utah currently has 2.94 GW of operating clean power capacity and 0.62 GW under construction. The state also has plans for an additional 4.05 GW of solar, battery, hydropower, and geothermal projects. One of the highlights is rPlus Energies’ $1.1 billion Green River Energy Center in Emory County, with 400 MW of solar and 400 MW of energy storage, enough to power 88,000 households. It will create 500 construction jobs and add $55 million to the local economy. Meanwhile, Fervo Energy’s 400 MW Cape Station Geothermal Project in Beaver County will be the world’s biggest enhanced geothermal system. With 6,602 construction and 161 full-time positions, it will have a $437 million annual payroll impact.
The House reconciliation bill would phase out both the Clean Electricity Production Tax Credit and the Clean Electricity Investment Tax Credit after 2028, to be finished before 2032. However, eliminating the Section 45Y and Section 48E tax credits would diminish companies’ ability to build and produce clean energy, jeopardizing these projects and the associated construction and operations jobs. It would also reduce the state’s ability to meet electricity demand, which is projected to at least triple by 2050.
Photo Courtesy Cape Station
Section 25D
Utah’s 497 MW of installed rooftop solar, the sixteenth-most in the country, is also a testament to its clean energy transition. With the Residential Clean Energy Credit, EnergySage expects the average Utahn to save $4,318 by installing solar panels over the next 25 years.
However, the House reconciliation bill would repeal this Section 25D credit after 2025. With the elimination of the credit that would help households adopt these upgrades, cost savings from technologies, including battery storage, geothermal heat pumps, and solar water heaters, are at risk.
Photo Courtesy EnergySage
Utah and the rest of the country will suffer without these tax credits. If the bill passes, Energy Innovation estimates 830,000 lost jobs nationwide, particularly impacting Republican districts, where 80% of domestic clean energy projects have been built. Consumers would see energy bills that are 50% higher and would pay $33 billion more per year. The national GDP would drop by $1.1 trillion by the decade’s end.
