In 2022, Congress passed landmark legislation to boost our economy, reduce energy costs for consumers, strengthen our energy security and, of course, reduce emissions. Roughly two and a half years later, this law has already spurred $600 billion of investments in the manufacture and deployment of clean energy, clean vehicles, building electrification and carbon management technology. These investments have benefitted communities across the country, particularly the “energy communities” that powered our rise to being a global superpower. We have all enjoyed the spoils, including the economic and security benefits that have come with America’s rise in the 20th century. Unfortunately, these gains have often come at the expense of the workers and towns who helped build it.
Today, these investments, including clean energy tax credits which have enjoyed decades of bipartisan support, are in danger. Much of the recent discussion centers on the idea that long-standing bipartisan policy approaches have suddenly transformed into the “green new deal.” In reality, the people most likely to suffer when those investments are frozen, repealed, or made inaccessible will be those same communities who not only poured blood, sweat and tears building this country, but who are all too familiar with being treated like collateral damage. Many of these cities and towns are once again brimming with the possibility that folks will not only be able to provide a decent life for their families, but that their kids might decide to stay in their hometown instead of moving away to chase economic opportunity. Pulling the rug out from them is not only heartless, it’s also bad business.
Don’t take it from me: Jim Farley, the president of Ford Motor Co, recently said that repealing the tax credits will result in sweeping job losses across the four battery plants Ford is currently constructing in Michigan, Kentucky, Tennessee, and my home state of Ohio. As NextEra CEO John Ketchum said on an earnings call last summer, “why would you cut credits that are creating jobs, create a much needed property tax base in rural America, that flow to customers that result in lower power prices, that attract new investments,” and deploy resources faster when demand is accelerated.
This reality is stark enough that Republicans and Democrats alike have focused on the business case in defending tax credits that are generating billions of dollars of investment in their states and districts. Eighteen Republican members of the House (fourteen of whom are still serving in Congress) sent a letter to leadership urging the preservation of the tax credits which “have spurred innovation, incentivized investment, and created good jobs in many parts of the country.”
These investments aren’t just creating jobs; they’re also keeping electricity prices low and boosting our energy security. What’s more, they’re helping support the competitiveness of U.S. companies who depend on global markets, including the EU which has enacted policies to disadvantage companies that don’t use clean energy to produce their goods. No matter the rhetoric, these investments and the benefits they provide aren’t partisan; they’re fundamentally about making sure America can maintain its economic influence in the face of a global economy that’s shifting rapidly below our feet. Repealing them would reduce U.S. GDP by as much as $510 billion over the next ten years, while ceding global leadership to other countries with the foresight to skate to where the puck is going. Preserving these investments, on the other hand, would be a bet on America’s future and our ability to outcompete anyone on a level playing field. That’s a bet that policymakers of all political stripes should be willing to make.
