Utah’s business leaders are sounding the alarm about serious economic consequences if the U.S. Senate proceeds with proposals to reduce green energy tax incentives in President Donald Trump’s significant legislation.
House Republicans have set their sights on the credits from the Inflation Reduction Act, which were introduced during the Biden administration. These credits are slated to be eliminated within 60 days following the enactment of the One Big Beautiful Bill Act, according to the current draft. The White House targeted the energy credits on Tuesday, proudly announcing that the megabill “repeals and rescinds every ‘green’ corporate welfare subsidy in the Democrats’ so-called ‘Inflation Reduction Act.'”
As senators hurry to influence the legislation before sending it back to the House in light of the upcoming deadline, businesses in Utah that have gained from the credits are appealing to Sens. Mike Lee and John Curtis for assistance in preserving their benefits. Supporters contend that energy tax credits have existed for many years and should not be subjected to political debate merely because the most recent version was enacted during the administration of the previous president.
They contend that the tax credits might play a crucial role in achieving the objective of American energy supremacy.
“I fear that these specific credits are being lumped into and having a label put on them as being either progressive or leftist … when that’s not the case,” said Derek Miller, president and CEO of the Salt Lake Chamber of Commerce. “The solar credits have been something that’s been bipartisan for a long, long time, but more importantly they ought to be taken out of the political realm at all.
A recent report from the Solar Energy Industries Association warns that approximately 330,000 jobs in the solar sector could be jeopardized if tax credits are not renewed, with Utah potentially facing a loss of 2,700 positions. Miller noted that this figure only reflects the immediate job losses, but as many as 7,500 positions might be affected by subsequent repercussions.
The tax credits serve not only to bolster local economies but also to assist the U.S. in addressing increasing energy demands amid an escalating competition with China in the realm of artificial intelligence. Paul Dickson, the president and chief revenue officer of Sunrun, which joined forces with Vivint Solar in 2020, contended that the negative perception surrounding the Inflation Reduction Act is causing policymakers to advocate for reductions.
As the leading buyer of Tesla Powerwall batteries, which are essential for storing solar energy to power homes during outages or at night, Dickson expressed concerns that the spending bill would greatly impede Sunrun’s efforts to expand power generation and storage capabilities.
A company based in Lehi has current assets that match the energy capacity of seven nuclear power plants, according to Dickson. Additionally, each year, Sunrun contributes the equivalent of another nuclear plant’s worth of power capacity.
Miller highlighted the significant presence of the solar sector in the Beehive State, attributing it to Vivint, a local company that has fully adopted solar energy, as well as the availability of a workforce skilled in selling home solar solutions directly to consumers.
