Today, Governor Josh Stein addressed Senate Majority Leader John Thune, Senate Finance Committee Chair Mike Crapo, and North Carolina Senators Ted Budd and Thom Tillis. He urged them to reconsider the U.S. House of Representatives’ efforts to end the energy and manufacturing tax credits established by the Inflation Reduction Act of 2022. These credits have played a crucial role in positioning North Carolina as a leading state for clean energy business investment.
Governor Stein stated, “Our state’s clean energy economy is booming, and companies’ decisions to locate their clean energy advanced manufacturing facilities in North Carolina have brought jobs and opportunities to our state.” He warned that “H.R. 1’s abrupt changes to these credits would jeopardize much of this investment, stifle the demand that many companies were counting on, and conflict with the goals of reshoring manufacturing that the Trump Administration has championed.” According to him, H.R. 1 could weaken the economy, increase utility prices for consumers, and undermine national security.
Since the passage of the Inflation Reduction Act in 2022, over $24 billion in clean energy technology investments have been announced across North Carolina. These include developments in battery storage for vehicles, solar panels, electric vehicle charging stations, transformers, critical minerals, and grid-enhancing products. These initiatives are expected to employ tens of thousands of people alongside more than 100,000 individuals already working in North Carolina’s clean energy sector. The potential repeal of these tax credits through a U.S. House budget resolution could threaten jobs and put billions in investments at risk.
Additionally, H.R. 1 might lead to significant increases in electricity costs for residents of North Carolina—over 13 percent for households and more than 20 percent for businesses. On average, families could see an annual increase of $200 in their power bills if these tax credits are repealed.
The full text of Governor Stein’s letter urging the U.S. Senate to protect IRA tax credits is available online.
