New York State could lose more than 20,000 jobs and lose out on clean energy tax credits under the tax cut bill passed by the House last week.
Senate Minority Leader Chuck Schumer said under the “Big Beautiful Bill” passed by Republicans, new data studies from NERA Economic Consulting shows that repealing the clean energy tax credits could cause New York to lose up to 20,300 jobs as clean energy projects are canceled or scaled back due to lack of incentive, with a nearly $3.5 billion hit to the state’s GDP and New Yorkers paying up to $650 in higher energy costs each year by 2032 if these cuts become law.
The Senate still needs to pass the bill before it would go on to President Trump for signature.
Schumer said the tax cut bill would:
- Eliminates the Energy Efficient Home Improvement Tax Credit, which provides families up to $3,200 to help weatherize their homes for better protection in the harsh winters and make improvements to make their homes more energy efficient to lower their electric bills with qualifying items like doors, windows, better insulation and heat pumps.
- Eliminates the Residential Clean Energy Credit, which gives New York families a 30% discount on home energy improvements, like solar panels, heat pumps, or energy storage, that help lower energy bills and keep the lights on during power outages.
- Eliminates the Clean Electricity Investment & Production Credits that support more cheap, clean electricity. With natural gas turbines on a five-year delay, the IRA’s clean electricity tax credits have gone to the buildout of wind and solar power while helping keep electricity prices from increasing and spurring demand for American-made energy products.
- Sabotages the Advanced Manufacturing Investment Tax Credit that has generated a more than five-fold increase in investment in manufacturing in the solar and EV supply chains, creating thousands of jobs and shifting these industries out of China to the U.S.
- Eliminates the IRA’s Electric Vehicle Tax Credits that make it cheaper to buy new and used electric and plug-in hybrid cars, and has led to a massive onshoring of EV and battery supply chain manufacturing, undercutting China and bolstering American companies.
- Eliminates the New Energy-Efficient Home Credit that makes it cheaper to build new, highly efficient and affordable homes, expanding the housing supply while reducing energy costs.
- Eliminates the Clean Hydrogen Production Tax Credit that supports American-made clean hydrogen, led by New York companies like Plug Power and Air Products, to be used for clean manufacturing and agriculture.
The Clean Economy Tracker estimates the Inflation Reduction Act’s incentives have spurred over $5 billion worth of investments in clean manufacturing in New York, creating over 7,200 jobs. Schumer said if this House plan goes through, many of the clean energy projects spurred by the IRA could be forced to scale back or even stop and the workers laid off, and projects that otherwise would have come online will never come to fruition. That would impact both major NY employers and manufacturers in the clean energy, manufacturing, electric vehicle, battery, research sector and our small businesses.
Since Trump was elected, approximately $14 billion worth of manufacturing projects have been outright canceled, representing more than 13,000 jobs lost. According to the Clean Investment Monitor, if the GOP plan to raise taxes on energy goes through, those cancellations could balloon to threaten more than $800 billion in private investment in domestic clean energy made in the past three years across the country.
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