Marshall: Keep clean energy tax credits from being cut

Don’t cut clean energy tax credits

As Congress debates federal clean energy tax credits, lawmakers must confront reality: Cutting these programs would inflict severe economic pain on American families already struggling with high costs. Eliminating these credits would drive up electricity bills, eliminate jobs, and make energy-efficient improvements unaffordable.

Family budgets on the line

For families squeezed by inflation, cutting clean energy tax credits would deliver another devastating blow. Independent analysis shows eliminating these credits would increase household electricity bills by an average of 10%, with some states facing increases over 20%.

These aren’t abstract numbers — they represent real money from working families’ pockets each month. These tax credits are saving American families up to $38 billion on electricity bills through 2030. In 2023 alone, 3.4 million families saved $8.4 billion on clean energy improvements.

Colorado exemplifies these impacts. Eliminating clean energy tax credits would create a $1 billion financing gap for energy projects and raise yearly household electricity bills by $145 by 2030. Colorado families can currently claim up to $3,200 in federal tax credits for energy-efficient home improvements and 30% of costs for solar panels, heat pumps, and battery storage.

Jobs that support families at risk

The Inflation Reduction Act is expected to generate 13.7 million jobs over the next decade, with 621,000 already announced in just two years. In communities suffering from manufacturing decline, these credits bring hope to families struggling to find stable, good-paying work.

Colorado’s 3rd District exemplifies this impact, attracting nearly $2.9 billion in clean energy investments. These include the CS Wind tower factory in Pueblo, expanding operations and hiring 850 workers. Each position represents a family that can pay mortgages, afford health insurance, and spend in the local economy.

Homeowner benefits in jeopardy

These tax credits have made energy-efficient improvements affordable for millions. The 25C Energy Efficient Home Improvement credit helped 2.3 million families improve their homes and reduce monthly bills in 2023. For low-to-moderate income households, these improvements mean not choosing between utility bills and groceries.

Seniors on fixed incomes and young families particularly benefit from energy improvements that create predictable monthly expenses and protection from volatile costs.

Communities finding common ground

These tax credits have gained support across political divides. Last August, 18 House Republicans urged Congress to retain IRA funding, warning that “full repeal would create a worst-case scenario.” Recently, 21 Republicans wrote supporting tax credit preservation.

Colorado Republicans Jeff Hurd and Gabe Evans initially joined 19 others calling for restraint in cutting the Inflation Reduction Act. However, both voted for the House reconciliation bill eliminating these credits, despite $3.7 billion in clean energy investments flowing to their districts.

A kitchen table issue

This debate affects what families discuss around kitchen tables: Can we afford the electric bill? Will my solar factory job survive? Could we replace that inefficient furnace costing hundreds extra each winter?

The House passed reconciliation legislation eliminating tax credits for energy efficiency upgrades, heat pumps, and solar installations at year’s end, with other credits phasing out after 2028. This creates painful uncertainty for families planning improvements or workers building careers in these industries.

Protecting family financial security

The Senate now has the opportunity to preserve these vital economic lifelines. Clean energy tax credits are working for American families — lowering utility bills, creating stable jobs, and making energy-efficient home improvements accessible.

Sens. Bennet and Hickenlooper should listen to their constituents — the families who have found much-needed financial relief through these programs — and recognize that cutting them would be economic self-sabotage. American families deserve nothing less.

The Grand Junction Cleantech Business Coalition, Conservation Colorado, and the Grand Valley Citizens’ Climate Lobby are local non-profit organizations that advocate for a clean energy transition. They are urging members of Congress to protect federal clean energy tax credits that drive economic growth, create jobs, and reduce greenhouse-gas emissions.

Jim Marshall, Chair of the Cleantech Business Coalition
Ian Roche, West Slope Organizing Manager – Conservation Colorado
Susan Hess, Co-lead – Grand Valley Citizens’ Climate Lobby