Industry Associations React to Passage of Tax and Spending Bill

WASHINGTON D.C. — Associations across the electrification industry have reacted to Friday’s passage of the budget reconciliation bill. With cuts to clean energy tax incentives, many associations are opposed to the legislation. The semiconductor sector, however, applauds the bill, which includes a semiconductor investment credit to increase the advanced manufacturing investment credit. See the industry’s reactions below.

Solar Energy Industries Association (SEIA):

Abigail Ross Hopper, president and CEO, SEIA

“The bill [signed by the President Friday] is a significant step backward for our nation’s energy economy at a time when we can least afford it. In the face of rising energy costs, global instability, and growing demand for power, Congress has turned its back on the very industries that are adding the majority of the new electricity-generating capacity to the grid.

“America is in the midst of an energy manufacturing boom, with new solar and storage factories opening across the country thanks to the forward-looking policy this law will upend. Now many of these brand new factories will be forced to shut down and lay off thousands of workers, gutting communities that were finally seeing the kind of industrial revival rural America needs and handing an untimely and strategic victory to China.

“While this bill avoided some very damaging provisions, it is deeply disappointing to see partisan politics outweigh practical pro-growth solutions that serve all Americans. Solar and storage are America’s best bet to lower energy costs, build long-term energy resilience, and break free from the grip of foreign energy dependence. It is especially disheartening to witness the total disregard for the thousands of small businesses in the residential solar sector that were given only months to reinvent themselves.

“Regardless of what happens in Washington in the coming months and years, markets will continue to drive outcomes. The solar and storage industry is resilient, and SEIA will keep fighting every day for smart, stable, business-friendly policies that deliver on authentic and true American energy independence.”

Electrification Coalition:

Anne Blair, Vice President of Policy, Electrification Coalition

“By eliminating incentives for EVs, this bill will cause irreparable damage to U.S. manufacturing capabilities, economic competitiveness, and national security.

“We want the future of transportation to be made in America; this bill accomplishes the opposite, jeopardizing hundreds of thousands of well-paying jobs, raising costs for U.S. businesses and consumers, and making U.S. vehicles less competitive on the global market. On the eve of Independence Day, Congress has chosen dependence, cementing our reliance on China for the future of transportation.

“Without a competitive U.S. EV industry, we will remain dependent on volatile oil markets to power our vehicles and reliant on China for the critical minerals used in most advanced technologies. We are incredibly disappointed that Congress has made a choice to entrench these vulnerabilities.”

American Clean Power (ACP):

Jason Grumet, CEO, ACP

“Today’s Congressional action is a dramatic swing in federal policy, disrupting the good-faith investments of American companies that are powering our economy and creating hundreds of thousands of jobs. The legislation restricts energy production, raises prices for American businesses and families, and challenges the reliability of our existing electric grid. 

“While the new policies are a step backward, the combination of surging demand for electric power and economic benefits of renewable energy technologies ensures that clean power will continue to play a significant and growing role in our nation’s energy mix. 

“America’s electricity demand is projected to surge by as much as 50% by 2040. That growth requires every available source of reliable power, including the clean energy technologies that are the only shovel-ready sources of additional power and the low-cost option across much of the nation. 

“Our economic and national security requires that we support all forms of American energy. It is time for the brawlers to get out of the way and let the builders get back to work.”

Semiconductor Industry Association (SIA):

“SIA applauds the passage of a strengthened advanced manufacturing investment credit, along with several other tax provisions of importance to our industry. The credit is vital to achieving President Trump’s goals of securing advanced manufacturing in America over the long term and promoting sustained investment in the U.S. semiconductor ecosystem.

“The credit has helped spur significant private investment across America’s semiconductor supply chain, put the U.S. on track to more than triple domestic chip manufacturing capacity by 2032, and is projected to create and support more than 500,000 American jobs. The enhanced credit will support additional investment into the domestic chip ecosystem and make America more globally competitive.

“We commend the steadfast leadership of Chairman Crapo in championing this critical effort. We look forward to working with the Administration and Congress to further secure the future of America’s semiconductor resurgence.”