Clean energy tax credits help all of us
To the Editor:
On May 22, the House of Representatives voted to pass a budget bill (The One Big Beautiful Bill) that drastically cuts America’s clean energy tax credits. Make no mistake: these cuts will hurt North Carolina and the Town of Waynesville if they become law.
Experts say that these changes will raise energy costs for our households, increase pollution in Western North Carolina, and threaten the growing economic investments we’ve seen in our state. The Town of Waynesville stands to lose up to $500,000 in federal incentives that would help pay for energy upgrades for town facilities. These savings for the town taxpayers will be gone unless the tax credits are preserved.
Federal tax credits — designed to boost clean energy manufacturing across America — have been working for us. Since the passage of the Inflation Reduction Act (IRA) in 2022, our state has benefited from $24 billion in investments and the creation of 20,000 jobs. And that is just the beginning. An analysis by American Clean Power, in a report supported by the U.S. Chamber of Commerce, estimates that continuing clean energy incentives will add $103 billion in investment and 350,000 jobs in North Carolina over the next 10 years. This brings real money and real livelihoods to us all.
But that success story could unravel quickly. The legislation is now in the Senate’s hands, and the House passage has set them on a path towards approving these drastic cuts. The cuts will deal a terrible blow to economic growth in N.C. and lead to a great loss of potential jobs.
If the cuts become law, energy prices will rise. Rolling back these tax credits means North Carolina (including Town of Waynesville} electricity users will face prices that are 15-20% higher in the coming years. Manufacturing will slow. Phasing out tax credits that support clean energy manufacturing will jeopardize long-term projects like battery plants, solar panel plants, and vehicle manufacturing facilities. Eliminating clean vehicle tax credits could put up to 100% of planned EV plant construction and a significant portion of existing capacity at risk, according to industry analysists.
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Waynesville households and local businesses will take a huge hit. A rollback of tax credits for home energy upgrades like rooftop solar, heat pumps, water heaters, insulation, and windows is a blow to residents who’ve been using these tools to cut energy bills. Incentives have made it easier for homeowners to install solar panels and heating and cooling devices that save money and even help stabilize America’s power grid. But those benefits — and the local businesses that depend on them — are in jeopardy if Congress moves forward with these cuts.
Encouragingly, a growing number of Republican members of Congress are supporting the clean energy tax credits. Four Republican Senators, including N.C. Sen. Thom Tillis, recently sent a letter saying repeal would “lead to significant disruptions for the American people and weaken our position as a global energy leader.”
The numbers are clear: clean energy tax credits are working for N.C. and for the Town of Waynesville. Undoing them now — as the House just voted to do — would be reckless and harmful. I urge North Carolina Sen. Thom Tillis and Ted Budd to work with their colleagues in the Senate to protect these tax credits.
Chuck Dickson
Mayor Pro-tem
Town of Waynesville
