Federal tax credits have led to an economic boom in Texas, creating thousands of jobs and strengthening the state's grid, and helping families save money on electric bills. In an opinion piece featured in San Antonio Express-News, Texas Advanced Energy Business Alliance Executive Director Matthew Boms and Freedom Solar Chief Executive Officer Bret Biggart highlight the importance of the tax credits and argue why Congress should leave them in place.
Federal tax credits are generating an economic boom in Texas, creating thousands of jobs, strengthening the state’s electricity grid and helping families save millions of dollars on their electric bills.
These tax policies have propelled energy development, spurred innovation, boosted American manufacturing and strengthened the nation’s infrastructure, all while helping the state to meet increasing demand for electricity and enabling homeowners to invest in solar panels, battery storage and geothermal heat pumps.
Unfortunately, beneficial energy initiatives have been thrown into uncertainty in recent months through funding freezes, stop-work orders and federal layoffs. Now, Congress is working on its tax, spending and debt limit package. This process will determine whether these vital tax credits survive.
Repealing these credits would undermine energy investment in Texas, lead to higher electricity bills and harm the grid stabilization seen since Winter Storm Uri.
Since 2022, in Texas, development supported by these tax incentives has generated about $17.17 billion in investments for advanced energy and transportation, nearly 26,500 jobs, and the development of 616 new facilities. During the next decade, these tax credits are projected to generate $458 billion in private-sector investments and $54 billion in new manufacturing investments in Texas.
Across Texas, smart tax policies are helping drive private investment into new power production — making more megawatts to meet growing demand.
A recent analysis from energy experts found that repealing the tax credits would reduce Texas’ gross domestic product by $17.17 billion in 2030 and $20.32 billion in 2035. Additionally, repealing the tax credits would cost Texans more than 87,900 jobs by 2030 and more than 115,000 jobs by 2035.
These tax credits are also helping individual consumers.
With the credits, consumers can receive refunds for up to 30% of the cost of solar panels, battery storage systems and geothermal heat pumps. These investments help homeowners create self-contained electricity systems that keep lights on and air conditioners, or heaters, running when extreme weather or utility issues take out the power.
Advanced energy is meeting demand spikes on cold winter mornings and hot summer evenings. The state keeps setting advanced energy records. On March 2, solar, wind and storage covered 75% of demand on the grid.
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