In response to the House’s major tax reform legislation, Advanced Energy United makes clear that the bill withdraws the U.S. from the global race for energy dominance
WASHINGTON, DC – Today, the United States House of Representatives passed a job-killing tax reform package that dismantles sound, long-standing energy tax credits. The bill passed by a vote of 215-214. Earlier this year, Advanced Energy United launched a campaign, Unlocking Advanced Energy, highlighting the $3 trillion in economic benefits, $846 billion in household savings, and 13.7 million American jobs these credits would generate over the next decade.
In response to the passage, Advanced Energy United President and CEO Heather O’Neill released the following statement:
"This legislation, as passed by the House in the dead of night, abruptly dismantles bipartisan, long-standing tax policy that has catalyzed billions in private investment for affordable, reliable energy while sparking a rebirth of manufacturing across America. If enacted as written, this bill will weaken our power system and send shockwaves throughout the U.S. economy by raising electricity prices, killing tens of thousands of jobs, and ceding energy dominance to China. This isn’t a scalpel, it’s a meat cleaver, and it will hurt us all.
At a time of growing demand, economic uncertainty, and fierce competition, we need smart, certain tax policies that are pro-growth. Last year alone, the advanced energy industry added over 50 gigawatts of new capacity to the U.S. grid, generated an estimated $400 billion in domestic revenue, and led the way with critical investments in energy storage, nuclear power, and American manufacturing. This work must continue without delay to power the U.S. economy and to keep the lights on across the country.
We call on the Senate and allies across Capitol Hill to ensure that the final reconciliation package preserves key tax policies, provides business certainty, and supports American energy dominance. Let's work together to get this right."
As this legislation now moves through the Senate, Advanced Energy United remains deeply concerned about several damaging provisions included in the House package, in particular:
- Requiring a range of advanced energy projects to commence construction within 60 days (!) of enactment, along with moving up the “placed in service” deadline to 2028, will pull the rug out from a host of projects in active development and effectively end use of the ITC & PTC going forward. Lawmakers should restore and codify “commence construction” language to provide certainty to businesses and meet rising energy demand from data centers, new manufacturing, and more.
- Foreign Entity of Concern (FEOC) restrictions that are complex, uncertain, and overly proscriptive. As written, these FEOC restrictions will undermine American competitiveness – particularly against China – by restricting energy production and undercutting domestic advanced energy manufacturing. The advanced energy industry supports sound FEOC restrictions that protect American taxpayer dollars and enable the continued onshoring of energy supply chains, but the current language is fundamentally unworkable.
- Abruptly ending transferability for the vast majority of projects going forward. Transferability brings additional private investment to advanced energy generation and manufacturing, maximizes the value of every tax credit, and supports cutting-edge technologies like enhanced geothermal and long-duration storage. It should be available for the lifetime of each credit, not ended prematurely.
- The sweeping repeal of residential and electric vehicle consumer credits, which directly undermines household savings and consumer access to advanced energy. At a time of rising energy costs, this repeal runs directly contrary to President Trump’s pledge to cut energy costs in half.
Click here to learn more about Advanced Energy United's work advocating for federal policies that allow advanced energy and electrified transportation businesses to thrive in America.