Americans’ energy prices would go up, manufacturing jobs down if Congress approves proposed tax credit changes

Proposed legislation released today by the U.S. House of Representatives’ Ways & Means Committee threatens to raise electricity prices nationwide and hurt the nation’s competitiveness in critical 21st century industries. The bill would severely curtail the clean economy tax credits that are driving investment and job creation in communities across the country. Ceres urges Congress to continue negotiating to achieve a final bill that maintains federal incentives for America’s energy producers, manufacturers, and consumers. 

“Clean economy tax credits have catalyzed hundreds of billions in private-sector investment to build the infrastructure and industries America needs to compete and win in the 21st century,” said Zach Friedman, senior director of federal policy at Ceres. “At a fragile moment for the U.S. economy and our global standing, Congress should double down on efforts to deliver affordable, abundant, homegrown energy, grow advanced manufacturing in key sectors like energy and transportation, and create jobs. Instead, the Ways & Means text released today would raise costs, undermine long-term business plans, and threaten America's ability to compete globally — particularly in Republican-held districts that have attracted much of this investment.”  

“Unless fixed by the House and Senate, this proposal will make it harder for families to save money on energy and gas by buying American-made advanced technologies, while reducing jobs in critical strategic industries across the economy,” added Friedman. “Ceres and the businesses we work with urge lawmakers to instead deliver a budget reconciliation bill that supports U.S. energy leadership and industrial strength. This is no time to raise taxes and create uncertainty for the businesses bolstering America’s innovation and competitiveness, ceding our leadership in the world’s most important industries to China and other countries.” 

Ceres has long worked with businesses and investors across the economy in support of maintaining clean energy tax credits and other federal programs, with an active advocacy role in this year’s budget reconciliation negotiations. In March, 80 leading businesses and investors joined Ceres’ flagship advocacy event LEAD on a Clean Economy 2025, including Carrier, Danone, DHL, dsm-firmenich, Ecolab, Ford Motor Co., Heirloom Carbon, HASI, Holcim, IKEA US, Lucid, Lutron, Michelin, Schneider Electric, and Siemens. They took to Capitol Hill to showcase the economic, energy, and geopolitical benefits of the tax credits in 100 meetings with GOP lawmakers and the White House. Companies returned to Capitol Hill for follow-up meetings in April and will again later in May. 

Amid the advocacy meetings, many key Republican lawmakers have publicly indicated support for maintaining clean energy tax credits. Days after LEAD, 21 House Republicans released a letter to Ways & Means Chairman Jason Smith emphasizing the need for policy certainty and the economic benefits the credits have brought to their districts. And in April, four GOP members of the U.S. Senate issued their own letter cautioning against repealing tax credits that boost U.S. manufacturing, reduce energy prices, and provide policy certainty for businesses. 

Clean energy tax credits have a long history of bipartisan support. Since they were extended and expanded by Congress in 2022, the private sector has capitalized on the long-term policy certainty by investing more than $420 billion into about 750 clean energy projects in the U.S., creating more than 400,000 jobs. Most of the benefits – including new factories, jobs, restored domestic supply chains, and affordable domestically produced electricity – are accruing in states and districts represented by Republicans in Congress.  

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About Ceres

Ceres is a nonprofit advocacy organization working to accelerate the transition to a cleaner, more just, and resilient economy. With data-driven research and expert analysis, we inspire investors and companies to act on the world's sustainability challenges and advocate for market and policy solutions. Together, our efforts transform industries, unlock new business opportunities, and foster innovation and job growth – proving that sustainability is the bottom line. For more information, visit ceres.org.