For now, the American economy is experiencing two important trends at the same time.
First, we are seeing a manufacturing boom. After decades on the offshore, young factories and plants are being opened in communities across the JSC to build front technologies that are in global growth, internal supply chains and good jobs that quickly appear in their support.
At the same time comes a sharp increase in energy use in the US. It is a sign of a dynamic economy, partly due to the growing of great innovations such as artificial intelligence and data centers to support it, but it brings true risks. The power supply is simply not continuing with the demand. Customers and businesses will face less reliable electricity and higher prices if we do not quickly add new, affordable power to the grid.
Both stories illustrate the importance of federal pure energy tax loans. And I have thought about this link as Congress begins to officially argue the tax policy in the coming weeks. Tax loans – which push the production and placement of affordable pure technologies, affordable here in the US – are a possible objective for repeal as lawmakers require ways to finance other advantages.
Let us be clear: the repeal would have deeply negative impacts on each of the two economic dynamics mentioned above. It is a recipe to damage the US production while further exacerbating our national energy crisis, increasing costs for businesses and consumers.
Federal Pure Energy Tax Loans-which have enjoyed a long history of two-party support-lasted and expanded and the results were impressive. In under three years, the US has seen some 750 New Projects of Pure Production and Setting up take shapereleasing more than $ 400 billion in private sector investment and creating about 300,000 new jobs.
These figures include nearly 200 new factories, which are expected to hire 100,000 people, with many in countries that have long seen their economies empty of deindustrialization and disinvestment. Meanwhile, tax loans are encouraging rapid and faster construction to build electricity-energy resources and battery storage resources, to be specific-at the exact time we need as much affordable power to get to the Internet as soon as possible to strengthen our economy.
Imagine the division if this policy was suddenly raised. The whole financial perspective on factories that have already broken the ground and have begun employment of communities around the US will be dramatically changed, potentially threatening their completion and canceling new local jobs, endangering America’s bum.
It will also discourage the construction of the new affordable new power, for which we have so much bad that demand increases. In fact, a Recent report from the Association of Pure Energy Buyers revealed that the elimination of federal tax loans will result in a 7% increase in electricity prices by next year, and the organization supported on the right Conservone revealed that the figure would double to 14% by 2035.
And these are not the only risks. Most importantly, tax loans are neutral technological-they mean that they apply to any source of energy without pollution. Their abolition would undermine efforts to renew with new forms of energy. Furthermore, repealing tax loans will also turn the US into the global race to lead the development of pure technologies, including electric vehicles – a point pronounced Of American automobiles who are afraid to lose to competitors around the world, including China, which has seen an explosive increase in EV production.
These are all major economic risks, which show why nearly 3,000 investors and companies publicly support clean energy tax loans when they last went to law in 2022. They knew what we are now seeing: strong pure energy policy is strong economic policy, promising more work, greater opportunities and innovative technology.
Now, tens of large companies are going to Capitol Hill this week as part of Lead to a clean economy 2025Seventh annual Washington event, DC advocacy organized by Ceres in support of friendly, innovative business 21vase Energy policies of the century. Businesses such as Akamai Technologies, Ford Motor Co., Franklin Energy, IKEA US, Michelin, Schneider Electric, and many others will meet with lawmakers – mainly Republicans – to call for the maintenance of clean energy stimuli during the next tax debate because it is healthy fiscal policy.
Some Republicans have already lined up with this view. Last year, after several meetings with US business leaders and job creators, 18 Congress Republicans Signed a letter For leading the Chamber, demanding that tax loans be stored in any future GOP legislation. They mentioned the economic benefits they bring to their districts and the security of the policy they give to the private sector. Most of those members remain in the congress this session.
It is a good sign that this future energy policy can be stored. But with the tax debate only starting with diligence, and some competitive interests that appear, the economic issue for tax loans must continue to be made out loud and clear.
If lawmakers take into account their repeal, its members must first be fully aware of the great benefits they are giving: the investments and work they are bringing in Congress districts across the country, their effect on keeping reliable and affordable energy and their role in conservation of American energy and economic leadership. Business leaders – so aware of economic realities and the impacts of price growth – are ideally appropriate to make that case. Congress would be wise to hear.