Ceres Senior Director, Federal Policy, Zach Friedman, issued the following statement after President Trump signed a budget reconciliation bill that curtails clean energy and advanced manufacturing tax credits.
“President Trump won office by prioritizing affordable electricity and the restoration of U.S. manufacturing jobs that have been lost to China and other countries. Unfortunately, the legislation he signed today will make those very goals harder to achieve. Cutting clean energy and advanced manufacturing tax credits will make it more expensive to deploy the quickest-to-build and most rapidly growing sources of power at a time when energy demand is rising, making it all but impossible to reduce electricity costs. It will threaten to shutter factories where hard-working Americans are building the key technologies of today and tomorrow. And, as a result, it will put the U.S. in a worse position to compete with China and other countries in AI, advanced manufacturing, autos, and other global industries that will command the 21st century.
“While this bill is disappointing, it could have been much worse if not for the tireless advocacy of the businesses that championed the clear economic case for maintaining clean economy tax credits. Since the 2022 extension and expansion of the credits, the private sector has invested hundreds of billions of private-sector dollars in clean energy and automotive supply chains, manufacturing, and deployment in every corner of the country, particularly in states and districts represented by Republicans in Congress.
“Despite some last-minute improvements made by the Senate, Ceres remains concerned that the bill’s overly complex and counterproductive foreign sourcing restrictions will add unnecessary red tape and uncertainty. The abrupt termination of key incentives will drive up transportation and energy costs, disrupt domestic supply chain investment, and eliminate good-paying jobs in sectors like batteries, steel, critical minerals, autos, HVAC, and solar.
“As the executive branch implements this legislation, it must uphold the full intent, spirit, and letter of the law. Any uncertainty or delays will freeze investment, directly undermining President Trump’s own goals of creating manufacturing jobs, reducing prices, and outpacing China in the race for industrial leadership.
Ceres remains committed to working with companies, investors, the Trump administration, and the current and future Congresses to build a policy environment that invests in American energy, jobs, and competitiveness.”
Ceres has long worked with businesses and investors across the economy in support of the tax credits and other federal clean energy 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 more than 100 meetings, primarily with GOP lawmakers and the White House. Companies returned to Capitol Hill for follow-up meetings with House offices in April and May, with a series of Trump administration and Senate GOP meetings in June.
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.