The roof of the Hotel Verdant in Downtown Racine received federal tax credits for installing solar panels. Labor and environmental advocates are attacking the Congressional Republicans' tax cut megabill for rolling back clean energy programs enacted in the Biden administration. (Photo by Erik Gunn/Wisconsin Examiner)

The tax cut megabill in Congress with a historic rollback on Medicaid also includes provisions reversing U.S. clean energy policies, advocates warned Wednesday, harming not only the environment but the economy.

“This legislation will kill economic growth and jobs, raise energy prices, and cede clean energy technology manufacturing to other countries,” said Carly Ebben Eaton, Wisconsin Policy Manager for the Blue Green Alliance, a coalition of labor unions and environmental groups.

Eaton took part in two online news conferences Wednesday to draw attention to the federal budget reconciliation bill and its repeal of key portions of the 2022 Inflation Reduction Act.

The budget bill has been the top priority of the Republican majority in Congress as well as the administration of President Donald Trump. It was drawn up to extend tax cuts enacted in 2017 during Trump’s first term that will expire at the end of 2025.

The package returned to the U.S. House for final action after a tied vote in the U.S. Senate that required Vice President JD Vance to pass the measure on Tuesday.

Steep cuts to Medicaid and federal nutrition programs have drawn the most attention during debate on the bill, along with the Congressional Budget Office finding that the wealthiest taxpayers will benefit most from its tax cuts.

The bill also includes measures that would undo several provisions in the Inflation Reduction Act (IRA), one of the signature pieces of legislation enacted during President Joe Biden’s four years in office. After its passage the act was lauded by environmental advocates for provisions to address climate change by encouraging clean energy through tax credits as well as federal investments.

The House version of the GOP bill “already dealt a serious blow to clean energy tax credits and investments,” Eaton said Wednesday, “but the Senate took it even further, doubling down on cuts that will cost jobs, stall progress and raise energy costs.”

Consumer, business renewable energy incentives

The IRA’s tax breaks were designed to encourage consumers to move to energy-efficient and clean energy appliances and vehicles and encourage utilities and other businesses to increase their use of renewable resources such as solar energy and wind power.

Eaton said Wednesday that clean energy tax credits are supporting more than $8.6 billion in private investments in Wisconsin.

Garrik Harwick, assistant business manager of the International Brotherhood of Electrical Workers union Local 890 in Janesville, said that over the past three years more than 300 members have worked on solar projects in Southern Wisconsin. He spoke at a news conference with Eaton and several other union leaders.

The IRA tax breaks have encouraged those developments, Harwick said, and the investments have included increased apprenticeship slots, bringing in new trainees.

“These investments don’t just deliver clean energy,” Harwick added. “They create good paying union jobs that strengthen our local communities.”

He warned that repealing the tax credit will likely reduce the use of clean energy technologies and increase energy costs by 6% for homeowners and more than 9% for business customers.

The IRA’s provisions that encouraged apprenticeships helped “open doors that many didn’t even know existed,” said Andy Buck, government affairs director for the Wisconsin and Upper Michigan district of the International Union of Painters and Allied Trades.

He said the union has added a number of jobs, including apprentices, installing energy-efficient glass in buildings on projects that were facilitated by the Inflation Reduction Act.

“When someone enters a registered apprenticeship program, they aren’t just learning a trade,” Buck said. “They’re building a career, gaining self-respect, and finding a path to a better life.”

Another provision of the 2022 law opened up tax credits for renewable energy to nonprofit organizations and government agencies, allowing them to receive direct payments to the federal government comparable to the value they’d receive from the tax credit if they paid taxes.

A new middle school being built in Menasha will include solar panels and energy storage, said Matt VanderPuy, a business agent for the Sheet Metal workers union in Sheboygan. The direct pay program will reimburse the district $3 million, he said, while the energy savings is projected at $190,000 per year.

“This is money that they can reinvest into the students, the teachers and the school district,” while saving on property taxes, VanderPuy said.

‘Very ugly impacts,’ says advocate

At another news conference, former Lt. Gov. Mandela Barnes observed that more than 90% of the jobs that IRA incentives helped create are in Republican congressional districts — although no Republicans in the state delegation voted for the bill. Barnes leads Forward Wisconsin, a nonprofit established during Biden’s term in the White House to inform people about the Biden administration’s infrastructure and climate investments and to defend them.

But business uncertainty this year, which Barnes blamed on GOP positions including Trump’s tariff executive orders, has led nationally to the cancellation of projects worth $15.5 billion, he said.

“The so-called big beautiful bill is going to have some very ugly impacts in Wisconsin, ripping away tax incentives for wind and solar farms, for rooftop solar, for farm sustainability programs, for clean cars and school buses,” said Amy Barrilleaux, communications director for Clean Wisconsin, at the event with Barnes. “And giving more tax breaks to big oil and gas companies does absolutely nothing to create jobs here or any opportunities here — it’s a gift to big oil at the expense of Wisconsin families and at the expense of our environment.”

Heather Allen, policy director for Elevate, an energy efficiency nonprofit, said as many as 11,000 clean energy and manufacturing jobs in Wisconsin could be at risk.

Plans for a $2.5 billion network of electric vehicle charging stations in the state have stalled, Allen said, and Wisconsin manufacturers that would have supplied components “are going to lose that opportunity now.”

“This legislation is going to strangle our solar businesses with red tape,” Allen said. “What you have here is an attack on small businesses that are delivering clean energy solutions to help families save money on their energy bills. And that includes solar installers, but it also includes other home energy contractors, other construction jobs.”

In four recent polls, a majority of those surveyed disapproved of the Republicans’  megabill — making it “more unpopular than any piece of major legislation that’s been passed since at least 1990,” Barnes said.

At the labor news conference, Emily Pritzkow, the Wisconsin Building Trades Council executive director, said advocates are urging people to contact their members of Congress.

“The polling on this is abysmal, and as long as people continue to call and deliver that message , that is what we need to do right now,” Pritzkow said. “Now is the time to weigh in, not once it’s coming to your front door, impacting you, your community, and people you care about.”

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Photo by Gregory Conniff for Wisconsin Examiner

The U.S. Senate is currently working on its version of  the so-called “One Big Beautiful Bill Act”—a deeply misleading attempt to dismantle the Inflation Reduction Act (IRA) and derail America’s clean energy future.

Let’s be clear: This isn’t just political posturing. This bill, backed by fossil fuel interests and already passed in the House, would strip away the very tools Wisconsin families, businesses, farmers and communities are using to lower energy costs, create jobs and build a more resilient future. The damage to our state would be both immediate and long-term.

In Wisconsin alone, 82 clean energy projects are currently in the pipeline. These projects represent not just thousands of jobs and billions in investment — they’re the backbone of a 21st-century economy. From wind turbine manufacturing in Milwaukee’s Menomonee Valley to solar installations in rural communities, Wisconsinites are hard at work powering our future.

If the “Big, Broken Bill” becomes law, it threatens to cancel or delay many of these efforts. Clean energy tax credits would vanish. The Solar for All program and clean manufacturing investments would be eliminated. Tax incentives for electric vehicles, energy-efficient buildings, and sustainable agriculture would be repealed. These aren’t just policy tools — they’re direct investments in our people, places and potential. Many Wisconsin communities have used these credits to launch local projects that reduce taxpayer dollars through direct pay for solar, geothermal and clean vehicles.

And we can’t afford to go backward. Energy demand is skyrocketing — especially with the rapid expansion of AI and data centers. Experts warn electricity bills could jump by 70% in the next five years if we don’t act. Clean, renewable energy remains the cheapest and fastest option to deploy. Gutting these investments would lead to higher prices, more power interruptions and less energy reliability — leaving Wisconsin families and businesses to bear the cost.

Without these programs, household energy costs could rise by up to $400 a year. That’s a hidden tax hike on working families — piled on top of rising costs from tariffs and supply chain disruptions already straining our economy.

Even worse, the bill guts EPA pollution standards and allows major polluters to sidestep environmental compliance. It’s a taxpayer-funded giveaway to fossil fuel interests, trading our health, air and water for short-term corporate profits.

Let’s not forget Wisconsin’s farmers, who were just beginning to benefit from billions in IRA investments for conservation, renewable energy and carbon-smart agriculture. With grant contracts abruptly canceled, many family farms are left holding the bag, having made plans in good faith only to be blindsided.

We can do better. Wisconsin has the talent, tools and environmental leadership tradition to lead the clean energy economy. Clean energy already supports more than 71,000 jobs in our state. With the right investments, we could add 34,000 more and grow our economy by $21 billion by 2050.

We’re also home to over 350 clean energy supply chain companies. With support from IRA tax credits and the Wisconsin Economic Development Corporation (WEDC), we can expand local manufacturing of batteries, solar panels, wind components, EV systems and smart grid technology — positioning Wisconsin as a national clean energy hub.

This is the kind of forward-thinking, common-sense investment we need. It creates good jobs, lowers energy bills, strengthens supply chains and revitalizes communities.

The Senate still has time to act. Let’s urge our lawmakers, regardless of party, to reject this harmful bill and stand with the workers, innovators and families building a cleaner, stronger Wisconsin. Our policies should reflect our shared values of fairness, innovation, resilience and stewardship — not special treatment for polluters.

This isn’t about partisan politics. It’s about economic survival, energy independence and the future we want to leave our children.

It’s time to move forward, not backward, with a smarter stronger, and more sustainable Wisconsin.

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A worker installs a solar panel on a roof. (Getty Images)

WASHINGTON —  Clean energy manufacturers and advocates say they’re perplexed how the repeal of tax credits in President Donald Trump’s “one big beautiful bill” will keep their domestic production lines humming across the United States, particularly in states that elected him to the Oval Office.

While some Republicans have labeled the billions in tax credits a “green new scam,” statistics reviewed by States Newsroom show the jobs and benefits would boost predominantly GOP-leaning states and congressional districts. Now the industry is already slowing amid Trump’s back-and-forth tariff policy and mixed messaging on energy and manufacturing.

Trump vowed in early April that he would “supercharge our domestic industrial base.”

“Jobs and factories will come roaring back to our country, and you see it happening already,” he told a crowd in the White House Rose Garden while unveiling his new trade policy.

But as a way to pay for the $3.9 trillion price tag of extending and expanding the 2017 corporate and individual tax cuts, U.S. House Republicans found billions of dollars in savings by slashing over a dozen clean energy tax credits enacted in the 2022 Inflation Reduction Act under President Joe Biden.

Critics say the mega-bill, which passed the GOP-led House on May 22 in a 215-214 vote, would effectively strip away the Advanced Manufacturing and Production Credit and other incentives.

They have bolstered the production of batteries and solar components in numerous states — top among them North Carolina, Georgia, Michigan, South Carolina, Indiana, Tennessee, Texas, Nevada, Illinois and Oklahoma, according to the Clean Investment Monitor, a joint project by the Rhodium Group and the Massachusetts Institute of Technology’s Center for Energy and Environmental Policy Research.

U.S. senators are now negotiating the massive budget reconciliation legislation.

Kevin Doffling, CEO and founder of Project Vanguard, an organization that connects veterans to clean energy jobs, warned pulling the plug on the clean energy tax credits will stifle progress the U.S. has made against other countries, namely China.

“We’re just going to see a huge pullback from investments inside of advanced manufacturing here in the U.S., and then we’ll go source it from other places, instead of doing it here,” Doffling said on a May 28 press call pressing for senators to protect the tax credits.

Doffling’s organization works in several states, including Arizona, Colorado, Indiana, Minnesota, Washington and Utah.

Moving away from fossil fuels

The suite of tax credits enacted under the IRA incentivized homeowners, car buyers, energy producers and manufacturers to invest in types of energy beyond fossil fuels, with the aim of a reduction in the effects of climate change.

For example, the IRA’s Advanced Manufacturing and Production Credit is awarded per unit produced and sold, and in some cases the capacity of energy output. 

Battery cell manufacturers can earn up to $35 per battery cell multiplied by potential kilowatt hours. In the case of solar, the credit offers producers 7 cents per solar module multiplied by wattage output. For mining operations extracting critical minerals, such as lithium, companies can receive a 10% tax break on the costs of production.

Most credits phase out by 2032 under the Biden-era law, except those for critical mineral mining, which continue.

A group of House Republicans, who have dubbed the tax credits the “green new scam” — echoing Trump’s rhetoric — pushed to accelerate the expiration in the final version of the mega-bill, even for critical mineral mining and production. The federal government classifies critical minerals as crucial to national security.

The House-passed bill also severely tightens language around foreign components, titled “foreign entities of concern,” making the credit practically unusable as many parts of the clean energy manufacturing supply chain are global, industry professionals say.

The legislation also repeals “transferability,” which allows companies with little or no tax liability to sell the credits.

For example, a critical mineral mining company would not turn a profit during an initial phase and could sell the credits to offset the cost of operations.

Schneider Electric, a global corporation with a U.S. base in Massachusetts, has facilitated 18 transfer deals worth $1.7 billion in tax credits for U.S. companies since 2023. In a statement, Schneider said the deals “reflect growing market interest in flexible financing mechanisms that directly fund renewable projects.”

Silfab Solar, which recently built a solar cell manufacturing and module assembly plant in Fort Mill, South Carolina, announced in mid-May the sale of $110 million in Advanced Manufacturing and Production Credits to help fund its expansion. The company already runs a solar manufacturing site in Burlington, Washington.

Investment soared

Spurred by the Advanced Manufacturing and Production Credit, known as 45X, actual investment in clean energy manufacturing since August 2022 reached $115 billion in April, up from $21 billion over the same length of time prior to the IRA, the Clean Investment Monitor found.

Of the 380 clean technology production facilities announced since the third quarter of 2022, 161 are now operational, according to CIM data.

The credit spurred a “sea change” in U.S. clean energy manufacturing, said Mike Williams, senior fellow at the liberal Center for American Progress and former deputy director of the BlueGreen Alliance, which advocates for the joining of labor and environmental organizations.

Despite solar technology’s roots in the U.S., the nation “didn’t even have a toe” in solar manufacturing, Williams said. Other countries, most notably Germany and then China, have dominated the industry.

“But after the Inflation Reduction Act passed, all of a sudden we see panel manufacturing, we see parts and components manufacturing, absolutely exploding. Plants have announced and started construction in Georgia, in Oklahoma,” Williams said in an interview with States Newsroom.

Active manufacturing of solar components, advanced batteries and wind turbines and vessels is concentrated in rural areas. Most are located in states that went red in the 2024 presidential election, according to the Clean Power America Association’s May 2025 State of Clean Energy Manufacturing in America report.

The renewable energy policy group estimated the industry supports 122,000 full-time manufacturing jobs across the U.S.

Active solar manufacturing sites and expansions are clustered in Texas, Ohio and Alabama, according to data from the association. Should major project announcements in Georgia pull through, the state would surpass Alabama for third place.

Advanced battery manufacturing spans 38 states, with the largest concentrations in California, Michigan and North Carolina.

But various parts of the battery production process stretch throughout the country — for example, battery cell production in Nevada and Tennessee and module production in Utah. Other supporting hardware is made in South Carolina, Arizona and Texas.

Lithium, a critical mineral for battery production, is currently mined in Nevada and California. And investors are eyeing other spots in the U.S., namely Alaska, to mine and produce graphite, another critical mineral.

China largely dominates the world’s critical mineral supply chain, according to U.S. Geological Survey data for 2024.

When accounting for the full suite of clean energy tax credits that were enacted in 2022 — including residential, electric vehicles and clean electricity credits — just over 312,900 new jobs are linked to the industry, the bulk in Republican-led congressional districts, according to the advocacy group Climate Power’s 2024 report on clean energy employment.

Troy Van Beek, CEO and founder of the Iowa-based solar company Ideal Energy, said his business weathered the pandemic and has been able to add jobs, but is now facing uncertainty again.

“​​We’re getting our feet under us and really starting to operate. I went from 20-some jobs to over 60 jobs, and those are good-paying jobs for people and their families. So we need that stability in the industry,” said Van Beek, who spoke on the call with Doffling.

“What troubles me is the rocking of the boat to such a degree that we can’t get anything done, and that’s been very difficult to deal with,” he said.

Industry slowdown

The industry has seen a pullback since January and the beginning of the Trump presidency.

Six announced projects representing $6.9 billion in investment were canceled in the first quarter of 2025, according to the Clean Investment Monitor’s latest State of U.S. Clean Energy Supply Chains report. While investment in clean energy overall continues to grow, the beginning of 2025 shows a slowdown from where the industry was a year ago.

Van Beek, whose solar company provides construction and installation among others services, said recent talks to strike a deal with a solar manufacturer collapsed after threats to the tax credits.

“We had worked an entire year on putting together (a deal) with one of the leading manufacturers in the world that has U.S. manufacturing to actually have joint ventures and work with them on projects,” Van Beek said. “And when this came up, that deal came to a screeching halt.”

Van Beek did not name the company on the call and did not respond to a request for a follow-up interview.

Several companies declined States Newsroom’s requests for comment while senators negotiate the bill.

Spencer Pederson of the National Electrical Manufacturers Association said the unpredictability is interrupting how operators are planning for the coming years.

“Whether large or small, just the business certainty and the ability to plan out your business is disrupted when you have any type of tax mechanism that is abruptly halted when you’re doing business planning at five- or 10-year intervals,” said Pederson, the association’s senior vice president of public affairs.

Too expensive, Republicans say

Some House Republicans, led by Rep. Jen Kiggans of Virginia, urged party colleagues to protect the clean energy tax credits — for example by removing the “overly prescriptive” restrictions on foreign entities of concern and keeping in place transferability of tax credits.

Kiggans wrote to House Republican tax writers in mid-May that “the last thing any of us want is to provoke an energy crisis or cause higher energy bills for working families.”

Her co-signers included Don Bacon of Nebraska, Mark Amodei of Nevada, Rob Bresnahan of Pennsylvania, Juan Ciscomani of Arizona, Gabe Evans and Jeff Hurd of Colorado, Dave Joyce of Ohio and Dan Newhouse of Washington, who all eventually voted for the final bill.

Far-right House members won on not only shortening the lifespan of the credits, but also on keeping the restrictive foreign entity language and on repealing a company’s ability to transfer credits.

The right-leaning National Taxpayers Union hailed the “commonsense changes” championed by the far-right House Freedom Caucus, under the leadership of Maryland Rep. Andy Harris.

The organization, which favors cutting government spending and lowering taxes, pointed to the cost. According to the Penn Wharton Budget Model, the credits as of 2022 were valued at roughly $384.9 billion over ten years.

“The longer these subsidies remain in law, the more expensive they will become and the harder it will be for Congress to remove them. Now it’s up to the Senate to support the Green New Deal Rollbacks,” Thomas Aiello, NTU’s senior director of government affairs, wrote in the days following the House vote.

Hope in the Senate?

But representatives from multinational corporations to mid-size businesses and sizable trade associations are now looking to the U.S. Senate to restore measures that they say created a boom time for investment, production and new energy on the grid.

Jeannie Salo, chief public policy officer at Schneider Electric, said in a statement to States Newsroom that “The Senate should restore and extend the timelines for key energy and manufacturing credits and their transferability to ensure the nation continues to attract key investments and projects that will power the U.S. economy and help make energy more affordable.”

Pederson said the restrictions on foreign components and company ties are “particularly restrictive coming out of the House.”

“So we’re hoping to work with the Senate Finance Committee and some of the members of the Senate who have indicated some willingness to make the foreign entity of concern language a little bit more workable,” Pederson said.

Doffling believes senators have a “longer term vision” of the nation’s energy strategy than House members who face reelection every two years.

“They see what’s happening not just in their district, but in the entire state that they represent,” Doffling said.

The House bill just sets the U.S. “further behind,” he added. “This bill is all about going backwards in time and hoping for the best.”

“I wish they could look at the numbers and understand the economic impacts it’s gonna have. … But somehow we’re talking about the fact of hamstringing a whole entire industry itself over verbiage of the word ‘clean.’”

A solar power array. Advocates say projects that help speed the conversion to clean energy, such as solar power, could be stymied by a U.S. House proposal to repeal clean energy tax credits. (Photo by Evan Houk/Maine Morning Star)

The tax cut legislation that U.S. House of Representatives Republicans are putting together in Washington includes measures that will cost thousands of jobs in Wisconsin and undercut the state’s progress toward cleaner energy, according to environmental and labor advocates.

To help pay for the extension of tax cuts enacted in the first Trump administration, the GOP-led House Ways and Means Committee is proposing to repeal clean energy tax credits, Politico reported this week. The tax credits were among the measures enacted in the 2022 Inflation Reduction Act (IRA).

“These credits are not just numbers on a balance sheet out in Washington D.C,” said Emily Pritzkow, executive director of the Wisconsin Building Trades Council, in an online press conference Wednesday. “They are representing real jobs, real economic growth, and real progress towards Wisconsin’s sustainable energy infrastructure. Since the IRA was signed into law in 2022 we have seen an unprecedented boom in clean energy development in the trades.”

The press conference was hosted by Forward Together Wisconsin, a nonprofit established to inform people about the Biden administration’s infrastructure and climate investments and to defend them.

“We’ve been seeing this real opportunity to drive energy costs down, and I cannot for the life of me understand why people want to reverse that progress,” said former Lt. Gov. Mandela Barnes, president of Forward Together Wisconsin.

In addition to the tax credits that the U.S. House proposal would repeal, President Donald Trump in his second term has frozen federal clean energy grants that were part of the 2022 legislation. Those include grants to establish a network of electric vehicle charging stations — prompting a lawsuit by 15 states, including Wisconsin.

Solar energy investments that have boomed in the last three years are among those that are threatened by the House proposal, according to advocates.

“At a time when billions of dollars are being invested in states that overwhelmingly voted for President Trump, this proposed legislation will effectively dismantle the most successful industrial onshoring effort in U.S. history,” Abigail Ross Hopper, president and CEO of the Solar Energy Industries Association, said in a statement this week.

Since passage of the IRA, Wisconsin has seen $933 million in clean energy and transportation private-sector investments, along with just over $2 billion from federal grants and loans, according to Innovation Policy & Technology, a San Francisco climate change policy think tank. The organization tallied 61 new clean energy and transportation projects that got underway in the state, with 45 manufacturing American-made products.

“Lower investment and higher energy bills due to repealing these federal programs and tax incentives will cost nearly 5,200 Wisconsin jobs in 2030 and more than 6,400 jobs in 2035, compared to current policies,” Innovation Policy & Technology reported.

The advocacy group Climate Power has calculated that without the federal support $5.4 billion for 15 planned Wisconsin clean energy projects could be in jeopardy.

Of those projects, 12 — 80% — are in five congressional districts represented by Republicans, according to Climate Power. Three representatives of those districts — Bryan Steil in the 1st CD, Scott Fitzgerald in the 5th CD and Glenn Grothman in the 6th CD — voted against the IRA in 2022. The other two, Derrick Van Orden in the 3rd CD and Tony Wied in the 8th CD, weren’t in office at the time but publicly opposed the legislation.

John Jacobs, business manager of International Brotherhood of Electrical Workers Local 494 in Southeast Wisconsin, said the clean energy tax credits and related policies have spurred investment and employment for the union’s members.

“I see first-hand how the clean energy tax credits have delivered on their promise, creating good family-sustaining union jobs across Wisconsin,” Jacobs said. “Repealing these tax credits could be devastating to many, but would put thousands of jobs at risk and hurt a growing industry.”

The tax credits were “an investment in America,” he added. The jobs lost if the credits are repealed “translate to economic instability for families across our state.”

The IRA also included a provision that extends the value of the tax credits to nonprofit organizations and government agencies.

Thanks to that benefit, called direct support payment, the Menasha Joint School District in the Fox Valley has qualified for a $4 million reimbursement from the federal government for installing rooftop solar energy and geothermal energy systems in a school currently under construction, said Brian Adesso, the school district’s business services director.

Once the school is complete the district expects to save $159,000 a year on its electric bill, “which is cost savings to local taxpayers and money that can be invested back into the students and staff,” Adesso said at the Forward Wisconsin press conference.

Adesso said the tax credits gave the district “certainty” it needed to be willing to undertake the clean energy additions to the project. Killing the credits would make that choice harder for school districts and impose higher costs on local property taxpayers, he added.

“The bill making its way through Congress takes a sledgehammer to the tax credits,” Addesso said — ending some credits early and attaching “bureaucratic restrictions that could make many of the credits unusable.”

Barnes said Forward Wisconsin Together is calling on Congress to protect the clean energy initiatives. “The people of Wisconsin deserve better,” he said. “The country deserves better. Clean energy as we know is the future, and we have to continue to invest in it.”

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The post Sugar Creek Lutheran Church Solar Project: Powering the Future of Community Programs appeared first on RENEW Wisconsin.

The post The River Food Pantry: Renewable Energy that Powers Community Growth appeared first on RENEW Wisconsin.

The following commentary was written by Daksh Arora, a project engineer at GameChange Solar, content director for the MIT Energy Conference 2025, and a fellow at the Clean Energy Leadership Institute. See our commentary guidelines for more information.

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States like Massachusetts must take the lead in advancing the United States’ climate goals, especially under the incoming Trump administration. While the Biden Administration’s landmark Inflation Reduction Act (IRA) of 2022 made significant strides, the U.S. is still on track to achieve only 66% of its greenhouse gas reduction targets by 2030.

With the potential for further setbacks, such as a possible second withdrawal from the Paris Agreement, states like Massachusetts must step up to drive the deployment of clean energy and climate solutions.

The “Direct Pay” provision in the Inflation Reduction Act (IRA) is a game-changer for municipalities, state and local governments, and other tax-exempt entities to access federal clean energy tax credits. This provision allows entities such as nonprofits, schools, tribal governments, and municipal utilities to receive tax credits directly from the IRS, rather than relying on tax liability to claim them.

Before the IRA, only private entities could benefit from these credits, putting public entities at a disadvantage in developing clean energy projects. The Direct Pay provision has no cap on government spending through 2032, offering new opportunities for public sector investment in clean energy. Furthermore, IRA also increases the maximum available tax credit for certain clean energy projects, from 30% to 50%, with the potential for up to 70% or more for projects in energy or low-income communities, or those using American-made materials, helping overcome financial barriers that previously slowed public clean energy development.

To claim direct pay, eligible entities must complete their energy projects before receiving payment from the federal government, which will occur the following year. While the tax credits will lower overall project costs, upfront capital is still needed to finance projects before the refund arrives.

To help address this, the Greenhouse Gas Reduction Fund (GGRF), a $27 billion program established by another IRA provision, provides increased green bank financing, supporting an equitable green financing ecosystem across the U.S. The IRS just finalized the direct pay rules and it would be really difficult for the next administration to repeal it. 

City governments like in Somerville and Cambridge can use direct pay to supplement the costs of deploying renewable energy infrastructure such as solar panels and storage technologies on public lands and buildings; electrifying vehicle fleets; and building out electric vehicle charging infrastructure.

The cities can also establish their own municipal clean energy utility. In 2024, voters in Ann Arbor approved the creation of a “Sustainable Energy Utility” (SEU) with 79% support. The SEU is designed to supplement the existing energy grid and help residents transition to cleaner, more reliable energy sources. The SEU plans to initially secure 20 megawatts of demand, using that to finance and install solar panels, batteries, and energy-efficiency upgrades for customers. The utility will own and maintain the solar systems, providing power to customers at cost, with no markup, allowing residents to access solar and backup power without upfront costs or debt.

Direct Pay is also a significant shift that allows public power entities, like the New York Power Authority (NYPA), to directly own renewable energy projects instead of relying on complex public-private partnerships. This makes it easier for NYPA to scale up clean energy projects by bypassing the need for third-party ownership structures that were previously required.

While there is an urgent need for funding in renewable energy, infrastructure, and other green initiatives, challenges like high capital costs and slow land acquisition complicate the transition. Some critics argue that financial de-risking may lead to the privatization of public goods and place the private sector in control of the green transition, raising concerns about the fairness of these arrangements. Despite these challenges, the question remains whether private investors can truly finance the world’s vast unmet green infrastructure needs and whether it’s technically possible to overcome the barriers in place. 

Regardless of this question, investing in public capacity is a net win for the environment as direct pay not only levels the playing field between for-profit and tax-exempt entities but also shifts energy generation ownership from private to public and nonprofit sectors, enabling more consumer-focused management of energy assets. States like Massachusetts should ensure that benefits from the IRA reach low-income and marginalized communities.

Massachusetts just streamlined the process for building solar and wind farms, transmission lines, and other energy infrastructure to help meet its climate goals by 2050. The state can do more by working to help communities understand the types of investments eligible for direct pay and how to secure financing for clean energy projects, making access to this funding easier and more efficient. The state can also lead by setting an example by deploying climate solutions at scale and ensuring utilities maximize the federal clean energy tax credits by regulatory oversight.

At the moment, when the state is experiencing a historic drought fueled by climate change, the inaction to expand clean energy infrastructure and advance environmental justice is no longer an option.

Commentary: Trump may struggle to repeal this IRA provision; Massachusetts should use it is an article from Energy News Network, a nonprofit news service covering the clean energy transition. If you would like to support us please make a donation.

The Biden administration has enacted the most consequential federal clean energy and climate policy in U.S. history, giving the nation a fighting chance at reducing greenhouse gas emissions fast enough to deal with the climate crisis. Former President Donald Trump, who has won the 2024 presidential election, has pledged to undo that work.

Though Trump’s executive powers will allow him to slow the energy transition in a number of ways, the extent to which he rolls back Biden’s clean energy accomplishments will be dictated in part by whether Republicans retain control of the House of Representatives. The GOP flipped the U.S. Senate, but votes are still being counted in key House races as of Wednesday morning.

Here’s what clean energy and climate experts say is most likely to be lost under a second Trump administration — and what might survive.

What Trump has said about energy

Trump’s rhetoric presages a worst-case future. He has called climate change a hoax and the Biden administration’s climate policies a ​“green new scam.” He has said he wants to repeal the landmark Inflation Reduction Act and halt the law’s hundreds of billions of dollars of tax credits, grants, and other federal incentives for clean energy, electric vehicles, and other low-carbon technologies.

Trump has also made ​“drill, baby, drill” a call-and-response line at his rallies, pledging to undo any restraints on production and use of the fossil fuels driving climate change. U.S. oil and gas production is already at a record high under the Biden administration.

“He has pledged to do the bidding for Big Oil on day one,” Andrew Reagan, executive director of Clean Energy for America, said during a recent webinar.

“Oil and gas lobbyists are drafting executive orders for him to sign on day one,” Reagan added, citing news reports of plans from oil industry groups to roll back key Biden administration regulations and executive orders.

A Trump administration would be all but certain to reverse key Environmental Protection Agency regulations limiting greenhouse gas emissions from power plants, light-duty and heavy-duty vehicles, and the oil and gas industry, all of which analysts say are necessary to meet the country’s climate commitments. It’s also almost sure to lift the Biden administration’s pause on federal permitting of fossil-gas export facilities.

Trump has also promised to withdraw the U.S. from international climate agreements (again), including the Paris agreement aimed at limiting global warming to no more than 2 degrees Celsius above pre-industrial levels.

“We know that Trump would take us out of the Paris agreement, and that would be the last time his administration uttered the word ​‘climate,’” Catherine Wolfram, an economist at the MIT Sloan School of Management and former deputy assistant secretary for climate and energy economics in the Biden administration’s Treasury Department, told Canary Media. ​“Losing that global leadership would be one of the greatest losses of a Trump presidency.”

What will happen to the Inflation Reduction Act? 

Trump won’t have the power to enact all of his promises on his own. Some of the decisions must be made by Congress, including any effort to repeal the Inflation Reduction Act or to claw back unspent funds from that law or the 2021 bipartisan infrastructure law.

Complete repeal of the Inflation Reduction Act would be highly disruptive to a clean energy sector that has seen planned investment grow to roughly $500 billion since the law was passed in mid-2022.

It would also undermine clean energy job growth, which has increased at roughly twice the pace of U.S. employment overall. A recent survey of clean energy companies found that a repeal of the law would be expected to lead to half of them losing business or revenue, roughly one-quarter losing projects or contracts, about one-fifth laying off workers, and about one in 10 going out of business. 

“We found that especially rural areas and smaller rural communities would experience the largest negative impacts of repeal of the Inflation Reduction Act,” Shara Mohtadi, co-founder of S2 Strategies, said in an October webinar presenting the survey data. ​“These are the regions of the country that have seen the biggest uptake in the economic benefits and the manufacturing jobs coming from other countries into the United States.”

Indeed, most of the investment and job growth the IRA has spurred has taken place in states and congressional districts represented by Republicans.

These on-the-ground realities have driven expectations that large swaths of the law’s tax credits would be likely to survive even with Republican control of the White House and both houses of Congress. Trump would face pushback within his own party to undoing the law entirely.

In an August letter to current Speaker of the House Mike Johnson (R-Louisiana), 18 House Republicans warned against repealing the clean energy and manufacturing tax credits created by the Inflation Reduction Act, which have ​“spurred innovation, incentivized investment, and created good jobs in many parts of the country — including many districts represented by members of our conference.”

“Prematurely repealing energy tax credits, particularly those which were used to justify investments that already broke ground, would undermine private investments and stop development that is already ongoing,” the 18 House Republicans wrote. ​“A full repeal would create a worst-case scenario where we would have spent billions of taxpayer dollars and received next to nothing in return.”

Republicans would need a roughly 20-seat majority to overcome opposition from these party members opposed to a full repeal, said Harry Godfrey, head of the federal investment and manufacturing working group of trade group Advanced Energy United.

“I don’t envision Republicans holding the House with 20-plus seats,” he said.

Godfrey also doubted that a Trump administration would be eager to undermine the domestic manufacturing boom that the law’s tax credits have spurred. He noted that at the October 1 vice-presidential debate, J.D. Vance, the Republican Ohio senator and Trump’s running mate, emphasized the need for the U.S. to ​“consolidate American dominance” in key energy sectors and industries now dominated by China.

While Vance went on to falsely accuse the Biden administration of failing to bolster U.S. industries against China, the goal of emphasizing domestic competitiveness could lead Republicans to avoid undermining progress in that direction, he suggested.

How Trump’s second term could derail the clean energy transition is an article from Energy News Network, a nonprofit news service covering the clean energy transition. If you would like to support us please make a donation.

A prospective buyer’s recent commitment to reinvest in a Gary, Indiana, steel plant sought to address union and government leaders’ worries about the sale’s potential impact on jobs and U.S. steelmaking capacity.

The plan to extend the life of the country’s largest and most carbon-emitting coal-fired blast furnace, however, has also heightened concerns from Northwest Indiana residents most affected by the facility’s air pollution.

“This is not acceptable,” said Susan Thomas, director of legislation and policy for Just Transition Northwest Indiana. “We now have technology for doing this much more sustainably.”

A study released Monday quantifies the public health threat highlighted by local clean air advocates, linking the Indiana plant to dozens of annual emergency room visits and premature deaths, as well as thousands of asthma attacks. 

Japan-based Nippon Steel is seeking approval from U.S. regulators for a $15 billion acquisition of U.S. Steel, the storied domestic steelmaker whose facilities include the Gary Works plant in Northwest Indiana, along with others in Ohio, Michigan and Pennsylvania, key battleground states where the proposed sale has been a subject of presidential campaigning. Vice President Kamala Harris and former President Donald Trump oppose the sale, as does President Joe Biden.

Much of the public discussion around the proposed sale has centered on its economic and national security implications, but those living near the plant have different concerns and demands. They say they’ve suffered for too long from steel industry pollution, and they only want Nippon as a neighbor if the company installs a new type of furnace that burns with lower or even zero emissions. 

“I would love to see Gary Works transform to green sustainable steel, bringing more jobs, cleaning up the area, that would be an amazing win-win,” said Libré Booker, a librarian who grew up near the mill. “The people have lived under these conditions for far too long. It’s definitely time for a change.”

Gary Works is the largest integrated steel mill in North America, employing about 2,200 people. Northwest Indiana is also home to two other steel mills — Burns Harbor and Indiana Harbor — and two coke plants that turn coal into the high-density raw material for steel. 

The populations in a three-mile radius of the Gary Works and Indiana Harbor steel mills are 96%-97% people of color, and almost two-thirds low-income people. The new study by Industrious Labs, a nonprofit focused on emissions reduction, used the EPA’s COBRA model to find emissions from the Gary Works plant likely are linked to 57-114 premature deaths, 48 emergency room visits and almost 32,000 asthma attacks each year.

The report cited the mills’ and coke plants’ emissions of sulfur dioxide, nitrogen oxides, carbon monoxide, particulate matter, and lead, all pollutants with direct impacts on public health. Gary Works is the number one emitter of PM2.5 particulate matter in the state, according to the company’s self-reported data analyzed by Industrious Labs. 

Industrious Labs steel director Hilary Lewis said the results bolster the demands of clean steel advocates, who want to see coal-fired blast furnaces replaced by direct-reduction iron, or DRI, furnaces powered by hydrogen made with renewable energy, known as green hydrogen. 

Booker was among 15 locals who participated in a recent “Sustainable Steel Community Cohort” run by Industrious Labs, attending five workshops learning about the science and policy of cleaner steel. 

Green hydrogen, green steel 

Green hydrogen is still not produced in large quantities anywhere in the U.S., and all the hydrogen currently produced in the country would not even be enough to power one steel mill, noted Seth Snyder, a partner in the Clean Energy Venture Group, at a recent conference in Chicago focused on clean hydrogen. 

But DRI furnaces can be powered by natural gas, which results in much lower emissions than coal. Cleveland Cliffs — which owns the Indiana Harbor and Burns Harbor mills — is transforming its Middletown, Ohio steel mill to gas-burning DRI with the help of a $500 million incentive under the Inflation Reduction Act. The company says the conversion will make it the steel mill with the lowest emissions in the world. 

With some modifications, DRI furnaces can burn a blend of natural gas and hydrogen or almost entirely hydrogen, experts say, meaning investment in a gas-burning DRI furnace could be a step on the way to “clean steel.” Lewis and other advocates, however, say gas-burning furnaces are not their goal, and they want the industry to transition off fossil fuels entirely. 

Hydrogen can be blended into fuel for traditional blast furnaces too, but the maximum emissions reductions that can be achieved that way are 21%, according to a paper on hydrogen-powered steel production in Europe by the Norwegian non-profit science organization Bellona. 

Nippon has announced it would invest $300 million in restoring the aging blast furnace at Gary Works, keeping it running for another 20 years. Installing a DRI furnace, meanwhile, typically costs over $1 billion.

“There is a gap,” said Lewis. “But these companies have the funding available. They have the money to make these decisions, they’re just choosing not to.” 

Incentives for change 

The IRA incentives tapped by Cleveland Cliffs are no longer available, but this summer California U.S. Rep. Ro Khanna introduced the Modern Steel Act, which would provide $10 billion in low-cost loans and grants, plus tax breaks and other incentives for new and revamped low-emissions steel mills, including hydrogen-fueled DRI.

Separately, lucrative tax credits soon to be available for “clean hydrogen” under the IRA could also make hydrogen-powered steel more financially viable. The specific rules for the tax credit — known as 45V — are still being finalized, amid controversy over what should qualify a project’s hydrogen as “clean.” 

“There are a number of different incentives in the IRA that can help steel companies build out their own green hydrogen infrastructure,” Lewis said. “Everything should be on the table. Steel companies would be such huge off-takers for green hydrogen, they can build their own economy here.”

At the BP Whiting oil refinery, 10 miles from Gary Works, there are plans underway for production of blue hydrogen, or hydrogen made with natural gas followed by capture and sequestration of the emissions. The plan is a marquee part of the Midwest (MachH2) hydrogen hub, one of seven planned hubs nationwide slated to receive $7 billion total in federal funding. Such blue hydrogen could be used to power a steel mill, with theoretically no resulting greenhouse gas or public health-harming emissions.

However, local environmental and public accountability leaders are strongly opposed to blue hydrogen production in the region, since carbon sequestration has not yet been done successfully on a large scale in the U.S., and it would entail pipelines carrying carbon dioxide from the refinery to a sequestration site. 

“The carbon capture component makes us very nervous, it seems to me they’re rushing into this without really taking the time to study it more seriously,” said Northwest Indiana resident Connie Wachala, another graduate of the sustainable steel program. “That might be because of all the money DOE is making available to industry. I wish our elected and industry officials would start thinking more creatively about how to make [green hydrogen] happen, how to make things better for the people in the neighborhoods and around the steel mills as well as for the shareholders.”

A different future 

All four of Wachala’s grandparents came from Poland to work in the steel mills. 

“Growing up in the 1950s, I remember my mom hanging the laundry up in the yard on a clothes line. If the wind was blowing a certain way, you’d get black particles on the clothes,” remembered Wachala, who worked as a creative writing teacher before retiring. “My dad’s car was always covered with that soot.”

Booker’s mother worked as a crane operator at the now-closed Bethlehem Steel mill in Burns Harbor, Indiana — among the first wave of women of color to be hired.

“I was proud she worked in the mill and took care of us, but I did not want [that job] whatsoever, seeing her come home every night after the swing shift, with the big old boots and jacket,” said Booker. “I wanted to go to college. It was a source of contention with my mom and I for some years.” 

That was in the days when locals largely believed, “if you want a good partner, you’ve got to get one that works in the mill,” she continued. “It was like a prestigious job and position. People looked up to people who worked in the mill.” 

Now, Booker laments, “Gary is like a joke,” scorned for its economic decline since the steel industry automated and shrunk — hemorrhaging jobs, and for the pollution that is still emitted. If the merger with Nippon does not go through, it’s widely believed U.S. Steel would eventually close the mill, as it closed its South Works plant in Southeast Chicago decades ago. At their height, the South Works and Gary Works plants together employed about 40,000 people in the Chicago area. 

Thomas wrote a frustrated rebuttal to the Chicago Tribune editorial board opining that the Nippon merger was crucial to Gary’s future. She and other local leaders say they don’t want the mill to close, but they can demand better than the extension of heavily polluting industry. 

“It’s just perpetuation of this as a sacrifice zone,” said Thomas. “‘This is what you’ve always been, this is how we’re going to keep you.’ But that’s not going to fly anymore.”

Steelmaker’s bid to buy U.S. Steel would extend life of Indiana plant — along with its emissions is an article from Energy News Network, a nonprofit news service covering the clean energy transition. If you would like to support us please make a donation.

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