Clean energy companies are urging US lawmakers to preserve tax credits under the Inflation Reduction Act (IRA).
These credits, crucial for clean energy expansion, are under threat as some Republican lawmakers push to repeal parts of the law, Reuters has reported.
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Hundreds of representatives from the solar, wind and renewable energy sectors are engaging with Congress members to highlight their contributions to job creation, investment and reducing electricity costs.
Their efforts aim to demonstrate the sector’s role in meeting growing power demands, especially from data centres.
In a letter, the companies stated: “The rise of AI, growth of new data centres and new manufacturing, is driving up electricity demand at rates not seen in decades. Now is not the time to reduce federal investments in diversified energy technologies or energy efficiency.”
Since the IRA’s enactment in 2022, Republican districts have seen benefits, with more than half of clean energy projects located there, according to the report.
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By GlobalDataDespite this, the clean energy sector remains vigilant due to the current administration’s prioritisation of fossil fuels and its pausing of federal wind projects.
President Donald Trump has expressed intentions to scale back the IRA, which includes billions in tax credits for clean energy projects.
Some Republicans have put forward legislation to repeal certain aspects of the bill, but more than a dozen Republican members of the House are in favour of safeguarding these credits.
The Republican-led Congress could use reconciliation to bypass Democratic votes, a tactic previously employed by President Joe Biden to pass the IRA.
Trade groups such as the Solar Energy Industries Association and the US Green Building Council are leading the lobbying efforts.
According to the report, the industry is meeting with Republicans who have shown support for tax credits that drive investment.
Representative Andrew Garbarino of New York led a letter to House Speaker Mike Johnson backing these incentives.
1,800 companies, including EDF Renewables and Sunnova, have signed letters urging lawmakers to preserve these critical incentives.
“Businesses have relied on these tax policies to plan investments, hire workers and change their product lines,” they stated, warning that repeal could lead to job cuts or relocation abroad.
