The budget reconciliation process enables Congress to quickly consider and advance fiscal legislation, including measures related to the country’s revenues, spending, federal debt limit, as well as a 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 certain 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(CRES) President Heather Reams reacted in a statement, “While we are disappointed that energy tax credits were repealed and substantially cut in the package passed by the House, we are grateful for the champions who have fought to protect critical provisions that incentivize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 President Donald Trump, the legislation threatens to unwind an incredible amount of investment and energy development across the country, particularly in Maine.
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 Maine alone, they would lead to $11 billion in spending and grow the state’s economy by $6 billion.
Since 2022, these tax credits have already spurred $321 billion in investments 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 in 2035.
Photo Courtesy Form Energy
On the other hand, if the clean energy tax credits were 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 3,500 total jobs per year would be created in Maine alone.
According to data from the Clean Economy Tracker, many clean energy manufacturing companies setting up shop in Maine have already committed to bringing jobs to the state. For example, Convalt Energy has been preparing a solar module production line at its Factory 0 in East Millinocket, while Nyle Systems is expanding a factory in Bangor that makes heat pump systems, adding 200 new jobs to an operation that already employed 120 Mainers.
Construction and operations roles at energy generation facilities are also threatened, as is the property tax revenue they would contribute to local communities. Some of the Maine-based companies that would be affected by the bill include Form Energy, Plus Power, and Longroad Energy. Form Energy’s Lincoln Battery Storage Project, for example, is set to revitalize an old pulp mill that was closed in 2015, turning it into the biggest multi-day battery system in the world. It has committed to 100 construction jobs and a $1.5 million community investment fund for workforce development and education.
At the ribbon-cutting ceremony for Acadia Renewable Energy’s $30 million Milo Solar project, which created more than 170 construction jobs, Senator Susan Collins (R-ME) reflected, “This project demonstrates that renewable energy makes economic sense. The lower utility bills will benefit customers for years to come and help attract new residents and businesses.”
Plus Power, meanwhile, has invested more than $100 million in its Cross Town Energy Storage Project, while Longroad Energy invested $63 million in its Three Corners Solar project. The latter annually generates $8 million in property taxes and annually donates $10,000 to local scholarships and charities.
Photo Courtesy Longroad Energy Management LLC
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 $2 billion in total additional income for Mainers; however, if they are stripped away, Mainers and Americans are likely to face economic difficulties. 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 Plus Power
Moreover, polling indicates that most Mainers are in favor of clean energy. Peak Insights found that 67% of Maine voters support the federal government accelerating the development and use of clean energy. Additionally, 85% ranked reducing energy costs as their most important policy issue, while 73% considered clean energy sources like hydropower, nuclear, solar, and wind to be most effective in meeting Maine’s future energy demand.
The polling also found widespread support for preserving the tax credits in the state, with 66% of Maine voters supporting 2022’s tax credits, rebates, and other incentives to encourage investment, manufacturing, and the use of more clean energy. Specifically, 90% said they support incentives for manufacturers to produce clean energy technologies domestically rather than abroad; 87% said they support subsidies and tax credits for energy-saving home upgrades like insulation and heat pumps; and 74% said they support tax credits for individuals to add solar panels to their homes.
In a letter to the editor published in the Bangor Daily News, David Harvey, a resident of Lewiston, Maine, wrote, “With great renewable energy potential ranging from tidal power to wind and solar, Maine needs the right grid infrastructure improvements so that potential does not go untapped… Expanding resources offers the potential for long-term job creation and economic development.” In a letter published in the Portland Press Herald, Penobscot County Commissioner Andre Cushing III discussed the critical role of the energy incentives: “The IRA’s investments and tax credits will ultimately help us secure a cleaner, more sustainable and more economically prosperous future for our children and future generations of Mainers.” In a letter to Sen. Collins, nearly 70 representatives from Maine’s solar and energy storage industries recently added that “cutting solar tax credits would be counterproductive.” Both legislative chambers must pass identical bills deciding the fate of these credits before the package can be sent to the President’s desk.
Mainers have recognized Sen. Collins’s efforts to support the clean energy investments. In a letter to the editor published in the Daily Bulldog, Maine Senator Bruce Bickford (R-20) wrote, “Senator Susan Collins has always been a champion for commonsense policies that benefit the Pine Tree State… I really appreciate that the Senator always works to protect tax incentives and investments in Maine’s energy and economic future. Coupled with the infrastructure investments Senator Collins helped secure, these tax incentives are already playing a critical role in strengthening Maine communities, growing our energy sector and workforce, and powering a stronger, more sustainable economy. It is vital for Congress to preserve them.” In an op-ed published in the Bangor Daily News, Stacey Fitts, a former Republican member of the Maine House of Representatives, added, “She has always worked across the aisle to help advance common-sense, pro-growth policies that benefit Mainers and businesses, and I hope that she will see that supporting the IRA should be no different.”
Sen. Collins advocated for clean energy tax credits even before 2022’s passage of the current slate of incentives. In 2021, she introduced the Energy Storage Tax Incentive and Deployment Act to establish an investment tax credit to help businesses and residences deploy energy storage. She has always been a supporter of energy storage, which is reflected in her comments on the Better Energy Storage Technology (BEST) Act: “Energy storage technology holds great promise in the fight against climate change. Strengthening current technology and advancing next-generation energy storage will allow us to integrate more renewables, such as wind and solar, which in turn will help to reduce emissions. That’s why I authored the Better Energy Storage Technology Act, which seeks to align U.S. research efforts to promote advancements in energy storage technologies.”
Recently, Sen. Collins spoke up in defense of Form Energy’s multi-day energy storage system in Lincoln, Maine, to which the U.S. Department of Energy awarded a $147 million grant through the Bipartisan Infrastructure Law’s Grid Innovation Program. According to the Maine Labor Climate Council, the project was set to receive clean energy tax credits prior to the reconciliation bill debate. Sen. Collins released a statement saying she spoke with Chris Wright, Secretary of Energy, about the project and “pointed out that it aligns with the administration’s energy policies, would help improve the reliability of the New England electric grid, and would be beneficial in using a shuttered paper mill in a rural area of the state.”
