The U.S. Senate’s passage of a budget reconciliation bill that curtails clean energy and advanced manufacturing tax credits is a significant setback to America’s energy, economic, and industrial goals, Ceres said in a statement today. These changes threaten America's ability to meet its growing power needs, restore domestic manufacturing and supply chains, and support private-sector investment in strategic technologies.
Zach Friedman, senior director of federal policy, Ceres, added:
"By raising taxes on energy producers and users, this legislation puts the U.S. at severe risk of ceding its leadership in the 21st century’s most important industries to China and other countries. It will lead to fewer manufacturing jobs, higher electricity bills for American families and businesses, and weakened global competitiveness.
“It is deeply disappointing to see Congress step away from proven, bipartisan policy solutions that are critical to meeting our widely shared goals of energy dominance, job creation, lower energy prices, and global competitiveness. That said, this version is an improvement over prior House and Senate proposals, with notable improvements over the text released by the Senate late last week.
Ceres is deeply appreciative of the many private-sector leaders, energy producers, innovators, and manufacturers who have worked hard to keep these pro-growth incentives as strong as possible. We also thank key Senators who fought for the improvements and championed amendments to restore the incentives that are vital to reducing energy costs and strengthening manufacturing and domestic supply chains for industries from wind and solar to HVAC, vehicle, battery, minerals, and steel. The improvements included in the legislation prove the strength of the business case for a stable policy environment that unleashes private investment in advanced manufacturing and affordable, reliable, homegrown clean energy. We urge the private sector to maximize the tax credits while they remain available.
Ceres remains committed to working with leading U.S. companies and investors to advance policies in this and future Congresses that invest in America—by restoring tax credits, aligning U.S. trade and infrastructure policy with clean economy advancements, and making it easier to build affordable and reliable homegrown clean energy infrastructure.”
The Senate bill finalized Tuesday includes several improvements over the unworkable version released last week. These changes at least partially reflect requests from Ceres and the companies it works with, including: restoring project eligibility based on the long-standing practice of when construction begins,—rather than the completion date developers cannot control; removing a surprise punitive excise tax; and eliminating the retroactive application of new rules to better support the shared goal of reshoring cost-saving technology jobs and supply chains from China.
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.