Lobbyists Blitz Senate to Save Billions in Energy Tax Credits

(Bloomberg) -- A coalition of clean energy trade groups is launching a lobbying blitz to convince the Senate to save billions of dollars in incentives set to be gutted by House-passed legislation.

The American Clean Power Association is targeting moderate Republicans who have balked at the House’s cuts to a host of lucrative tax credits as well as staff of the Senate’s tax writing committee, according to people familiar with the matter who asked not to be named because the information is private.

The effort comes as the Senate sets to work this month crafting its own version of President Donald Trump’s signature $3.9 trillion tax-cut bill, with a goal of sending the measure to the president’s desk by July 4. The House’s version of the bill would aggressively phase out tax credits for the production of clean electricity and would put over 350 gigawatts of clean power projects “at risk” representing more than $550 billion of investment, according to lobbying materials seen by Bloomberg.

“The House bill, if enacted would create significant uncertainty for many potential projects being planned now or already under construction,” the document said.

The House version also includes stringent restrictions on the use of Chinese components and materials that industry advocates said would render the credits useless and limit the ability of companies to sell them to third parties.

The American Clean Power Association, which represents companies such as wind turbine maker Vestas Wind Systems A/S and renewable energy developer Engie, declined to comment. 

Other groups lobbying on the effort include the Solar Energy Industries Association, which recently released an analysis that said the changes in the House-passed bill would put some 330,000 jobs at risk and could trigger the closure or cancellation of 331 factories and erase $286 billion in local investment in American communities.

“The house bill would be devastating for solar, particularly resident solar,” said Kyle Wallace, vice-president of government affairs at Louisiana-based solar leasing company PosiGen. “Everyone assumes the Senate will make improvements, but we just don’t know what that means.”

Wallace said his lobbying efforts include meeting with Senate offices to highlight jobs created by the projects as well as “making sure they are hearing from all the folks that are impacted by this” such as employees and customers.

In the meantime, the House bill, which would repeal tax credits for companies that lease rooftop solar systems as well as homeowners who buy them outright, is already causing customers to second-guess installations and investment to freeze up, Wallace said. 

A handful of Republicans have said they want to make changes to the bill, but it remains to be seen how meaningful they will be. Deep cuts to former President Joe Biden’s signature climate law were required to secure the votes of a band of ultraconservative House members that Speaker Mike Johnson needed to approve the legislation, which was passed by one vote. 

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