WASHINGTON (AP) — In a significant legislative move, Republicans in Congress are advancing a sweeping tax and spending cut bill that could severely impact the clean energy sector. A North Carolina renewable energy executive, Will Etheridge, has warned his 190 employees about potential job losses due to proposed cuts to clean energy tax credits.
The bill, currently in the House, aims to eliminate a 30% tax credit for rooftop residential solar by the end of the year. This credit, part of the Biden administration’s Inflation Reduction Act, was intended to last into the next decade. Former President Donald Trump has criticized these tax credits, labeling them as part of a “green new scam” that misappropriates taxpayer money to support a “globalist climate agenda.”
Impact on the Solar Industry
Industry leaders and analysts predict that the GOP-backed bill will reverse the growth of the renewable sector and lead to job losses. Bob Keefe, executive director of E2, a business group advocating for pro-environment policies, stated,
“The residential solar industry is going to be absolutely creamed by this.”
Will Etheridge, CEO of Southern Energy Management, expressed concern over the potential layoffs of 50 to 55 workers due to the elimination of residential tax credits. He described the situation as a “bait and switch,” highlighting the reliance on these credits for business stability.
Political Dynamics and Business Reactions
The bill’s passage in the Senate, despite opposition from some Republican senators, underscores Trump’s influence over the legislative process. Senator Thom Tillis of North Carolina, who voted against the measure, announced he would not seek reelection after Trump suggested supporting a primary challenger.
Companies have invested over $20 billion in clean-energy projects in North Carolina in recent years. Etheridge, whose company specializes in solar panel installations and energy efficiency, was among those lobbying for changes to the bill. However, the proposed legislation threatens to disrupt these investments.
Economic and Employment Implications
Adam Michel, director of tax policy studies at the Cato Institute, argues that businesses dependent on federal subsidies may not be viable in the long term. He stated,
“If you require a money-spigot from Washington to make your business viable, it probably shouldn’t have been in business in the first place.”
Despite Michel’s perspective, the potential job losses are a significant concern. Karl Stupka, president of NC Solar Now, noted that the Senate’s bill, while easing the impact on commercial projects, devastates residential tax credits. He anticipates laying off half of his workforce, with broader economic repercussions.
Future Outlook and Industry Adjustments
As the bill progresses, companies are expected to expedite solar installations before the tax credit ends. Stupka warned of a “severe shock wave” through the industry if the bill becomes law. Meanwhile, experts at E2 reported that $14 billion in clean energy investments have been postponed or canceled this year, even before the bill’s debate.
The Associated Press receives support from the Walton Family Foundation for coverage of water and environmental policy. The AP is solely responsible for all content. For comprehensive environmental coverage, visit AP’s Climate and Environment Hub.
