Cuts to clean energy credits threaten NC jobs, power bills and billions in spending
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- Proposed repeal of federal clean energy credits could jeopardize NC jobs, investment.
- An estimated 100,000 clean energy jobs and $24B in projects face uncertainty.
- Repeals could raise NC household power bills by $200 annually, Gov. Josh Stein says.
Gov. Josh Stein and North Carolina’s clean energy industry are sounding the alarm on the impact provisions included in Republicans’ One Big Beautiful Bill Act could have on the industry and household utility bills.
Members of the U.S. House proposed clawing back the clean energy tax credits created in the Inflation Reduction Act of 2022 for buying clean vehicles, making energy-efficient improvements to homes, building energy-efficient homes or making and selling clean-energy components, among other things.
The tax credits encourage businesses and homeowners to invest in renewable energy and energy efficiency.
Now some clean energy advocates are concerned about potential job losses, higher utility bills, more spending on energy and lost investments.
“When we make clean energy less economic, less of it gets built and we’re more reliant on fossil fuels that have higher prices,” said Robbie Orvis, senior director of modeling and analysis at Energy Innovation, a clean energy and climate policy think tank, during an Environmental Defense Fund news conference last week.
Will Scott, southeast director of climate and clean energy at the Environmental Defense Fund, a nonprofit advocacy group, said North Carolina is ninth in the nation for clean energy jobs, with more than 100,000 people working in the clean energy sector.
Those include projects centering on:
- batteries
- solar
- zero-emissions vehicles
- critical minerals
- wind
- energy storage
Companies announced plans for more than 20,000 clean energy jobs in North Carolina over eight years, with $24 billion in planned capital spending, according to a list released by state government in December under then-Gov. Roy Cooper.
Announced projects include those from:
- Wolfspeed
- Toyota
- Boom Supersonic
- Boviet Solar
- Natron Energy
And many of these businesses spent money with the promise that some of the tax credits would be available to them.
Individuals also took advantage of the tax breaks, with 85,350 North Carolinians receiving the home efficiency tax credit, saving $2,035 on average, according to a fact sheet from Climate Power, which describes itself as “a strategic communications organization focused on winning the politics of climate.”
Stein urged Congress to protect the tax credits.
“Congress’ proposed repeal of the Inflation Reduction Act could cost North Carolina tens of thousands of jobs by 2030, along with billions in clean energy investments spurred by clean energy and manufacturing tax credits,” the Democratic governor said in a news release on May 28. “Repealing the credits could also raise electricity costs for North Carolina families by $200 per year.”
North Carolina’s 10 House Republicans helped pass the bill through their chamber and onto the Senate.
The House Freedom Caucus warned senators last week if they “stripped out” or watered down” what they called the “IRA Green New Scam rollbacks” they would not accept the bill when it returns to the House.
Rep. Chip Roy, a Republican from Texas, wrote in May that the IRA helped line the pockets of billionaires while building “ineffective, unattractive, and unwanted energy projects.”
“The House Freedom Caucus Board will stand united holding the line,” the House’s most far-right members wrote in a news release. “The American people didn’t send us here to cave to the swamp — they sent us here to change it.”
But members of Congress say they’re hearing continually from industry officials about how the proposal is already harming their companies.
NC’s Thom Tillis steps in
There, Sen. Thom Tillis, a Republican from Huntersville, is trying to help cushion some of the blow clean energy businesses might face from the IRA repeals.
Senate Majority Leader John Thune received a letter from Tillis, co-signed by Republican Sens. Lisa Murkowski, of Alaska; John Curtis, of Utah and Jerry Moran, of Kansas, urging him to consider the potential fallout to businesses and people who invested in clean energy based on the current credits offered.
They told Thune they were most concerned about cutting tax credits for qualified facilities that generate electricity with zero greenhouse gas emissions; for investing in property producing clean energy, including energy storage technology, or for domestic manufacturing with clean energy components like solar, wind, battery, inverter components or critical minerals.
Tillis, Murkowski, Curtis and Moran urged Thune to consider whether the existing tax credits do one of three things:
Spurs new domestic manufacturing and investment;
Reduces utility bills for consumers, especially in rural, remote areas;
Ensures certainty for businesses that have already spent money in the United States based on the current credit structure.
American companies have made substantial investments in domestic energy production and infrastructure based on the current tax framework, they told Thune.
“A wholesale repeal, or the termination of certain individual credits would create uncertainty, jeopardizing capital allocation, long-term planning, and job creation in the energy sector and across our broader economy,” the senators wrote.
And they voiced concern that any modifications to the tax code needed to be done without worsening economic pressures on households and businesses.
“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,” the senators wrote.
But they also said they weren’t against reforms within the tax system to ensure efficiency, accountability, fiscal sustainability and implementation that follows the rule of law.
“We urge a targeted, pragmatic approach that balances these priorities without undercutting current and future private sector investments that are vital to domestic manufacturing, energy innovation and affordability for American families,” the senators wrote.
Tillis’ senior adviser, Daniel Keylin, told McClatchy that Tillis wants to ensure the bill does not unintentionally cost jobs or capital when identifying cost savings.
“Sen. Tillis is not trying to keep these energy tax credits but rather phase them out over time so the jobs created and capital invested will not be lost,” Keylin said. “This also plays a role in supporting an all-of-the-above approach to American energy independence and meeting the energy demands of our nation’s AI advancements.”
Last week, when the Environmental Defense Fund hosted its news conference, many industry leaders echoed the concerns of Stein and Tillis and said they found some relief that Tillis was showing support for the industry.
“Repealing these incentives would not only damage our economy, but it would leave us ill prepared to tackle the rapidly rising demand for energy that is coming fast in North Carolina,” Scott said.
Scott said he’s hopeful that Tillis and Budd “fight to protect the incentives that are fueling the North Carolina clean energy boom and delivering real benefits to our state.”
This story was originally published June 12, 2025 at 12:26 PM.
