Following House vote, U.S. Senate must stand up for energy affordability, global competitiveness, and job growth

Ceres issued the following statement after today’s early-morning vote in the U.S. House of Representatives on a budget reconciliation bill that severely curtails clean economy tax credits and incentives. 

“The legislation passed today by the U.S. House of Representatives would raise taxes on American advanced manufacturing and energy production, while introducing uncertainty and red tape that freezes investment in key sectors. It is unfortunate the bill passed in this unworkable form, all but eliminating clean economy incentives, even as leading companies in communities across the country warned about the severe impacts to energy affordability, job growth, and U.S. global competitiveness,” said Zach Friedman, senior director of federal policy, Ceres. “Businesses need policy certainty as they invest and plan to reshore jobs and supply chains and build critical infrastructure. Unless redone, this legislation will raise prices across the country, resulting in less energy and more scarcity. It is the equivalent of waving the white flag of surrender to China and other countries for investment in strategic core industries including AI, critical minerals, batteries, autos, energy, steel, and aluminum, and it will threaten our economic, energy, and national security.  

The legislation also includes provisions to defund and delay the Methane Emissions Reduction Program and the Waste Emissions Charge, both of which aim to reduce waste and bring more gas to the market. Ceres issued a statement early this year emphasizing the importance of these programs to help U.S. oil and gas producers control highly potent methane pollution and stay competitive in global markets that are seeking transparency on methane pollution.  

“As this legislation moves forward, we are grateful to members of Congress from both parties and chambers who have expressed concerns about cutting these incentives. We are excited to work with business leaders and the Senate in the weeks ahead on legislation that achieves our shared national goals of energy dominance, affordability, and domestic manufacturing growth so that America can compete and win against China and other countries in this century’s most important industries,” added Friedman.

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 May, and plan to engage in further meetings with the Senate in June. 

Amid the advocacy meetings, many key Republican lawmakers have publicly indicated support for maintaining clean energy tax credits. 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.