WASHINGTON, D.C. – The House Committee on Ways and Means passed its part of the massive package delivering tax cuts for billionaires. The measure would effectively eliminate all tax incentives for clean energy, electric vehicles, manufacturing, hydrogen, and more, putting hundreds of billions of dollars of investments into doubt and raising costs for households and drivers. The final vote passed the committee with all Republicans voting for it and all Democrats opposed.
The following is a statement from Christy Goldfuss, executive director of NRDC (Natural Resources Defense Council):
“In a bid to cut taxes for billionaires, every Republican on the committee voted to take a sledgehammer to the clean energy tax provisions that millions of Americans rely upon.
“This bill would pull the rug out from under one of the most dynamic parts of the American economy. These tax credits have helped deliver billions of dollars in new investments in homegrown American energy. At a time when electricity demand is skyrocketing, this is the exact opposite of what is needed and what was promised.
“Every lawmaker who voted for this measure voted for higher energy bills, fewer jobs, and tax increases on drivers, homeowners, energy companies, and manufacturers.
“Instead of this destructive approach, lawmakers need to look at the businesses and workers in their own districts and deliver the stable investment framework they need to thrive.”
Background
Among many other damaging provisions in the measure passed by the House Ways and Means committee, this measure:
- Fully repeals (this year) vehicle and vehicle charging credits, which have driven demand for vehicle and battery supply chain investments, after this year.
- Fully repeals credits that lower residential energy costs after this year, including consumer credits for heat pumps, rooftop solar, and insulation upgrades.
- Effectively repeals clean electricity generation and storage credits under the guise of a “phaseout,” overturning 15 years of precedent that projects have relied upon.
- Repeals transferability of tax credits after two years, despite the success of this key financing tool in unlocking access to private sector investments in energy.
- Imposes impossible new red tape on both new and existing projects that will immediately freeze a broad range of investments, with particularly difficult rules for clean electricity and manufacturing credits.
- Targets wind supply chain manufacturers by completely cutting off their credits after two years, including for existing facilities.
- Fully repeals the clean hydrogen credit for projects starting construction after this year.
NRDC (Natural Resources Defense Council) is an international nonprofit environmental organization with more than 3 million members and online activists. Established in 1970, NRDC uses science, policy, law and people power to confront the climate crisis, protect public health and safeguard nature. NRDC has offices in New York City, Washington, D.C., Los Angeles, San Francisco, Chicago, Beijing and Delhi (an office of NRDC India Pvt. Ltd).
