Business organizations together with labor unions oppose the Senate version of President Donald Trump’s tax-and-spending package because they believe the proposed cuts to clean energy subsidies will damage employment and increase electricity expenses.
The proposed legislation would eliminate wind and solar and battery project tax benefits while implementing new equipment taxes that target products containing Chinese components. The new changes surpass previous House and Senate drafts by implementing stronger measures which threaten to slow down renewable energy sector expansion.
Tesla CEO Elon Musk expressed his opposition to the proposed cuts through X by calling them “incredibly destructive.” The U.S. Chamber of Commerce predicts that these changes will increase power costs because AI-powered technologies will drive up electricity demand.
Sean McGarvey from North America’s Building Trades Unions described the bill as the “biggest job-killing measure in U.S. history” by comparing its effects to the cancellation of 1,000 Keystone XL pipelines.
The president has made two conflicting promises by supporting fossil fuel development to meet increasing energy needs while vowing to eliminate renewable energy subsidies. Clean energy supporters actively campaign to maintain funding support during the Senate amendment process before the final vote.
