New Tax Law Hurts Clean Energy Jobs & U.S. Manufacturing in 2025

What’s Going On With Clean Energy?

Clean energy is power that doesn’t pollute the air or harm the planet. It comes from the sun, wind, and water. More people want clean energy because it helps fight climate change and keeps the Earth safe for future generations.

In the past few years, clean energy in the U.S. was growing fast. More companies were building wind turbines, solar panels, and electric cars. But now, that growth is slowing down—and it’s because of a new tax law.

What Did the New Tax Law Do?

The U.S. House of Representatives passed a big new tax bill in May 2025. It includes lower taxes for workers, families, and businesses. But it also cuts many clean energy tax credits.

Tax credits are money-saving rewards from the government. If a company builds something good for the planet—like a solar farm—it can get a tax credit. This helps lower the cost of clean energy and encourages businesses to do more of it.

But now, some of those tax credits are gone or cut back. That means clean energy companies won’t get as much help as before.

Why Is This a Big Deal?

Without tax credits, clean energy projects are more expensive to build. This means companies might slow down or stop building them. Here are a few ways this can hurt the U.S.:

1. Fewer Jobs: Clean energy has created thousands of jobs. People build solar panels, install wind turbines, and make electric car batteries. If companies stop building these things, workers may lose jobs.
2. Less Energy Independence: The U.S. wants to make more of its own energy and rely less on other countries. Clean energy helps with that. If fewer clean energy factories are built, the U.S. might have to buy more energy or parts from other countries.
3. Slower Climate Action: Clean energy helps reduce pollution. If the U.S. slows down its clean energy plans, it may not meet its goals to fight climate change.

Real Problems Already Happening

Some clean energy companies were ready to build big factories in the U.S. But after the tax credits were cut, they hit pause. They’re worried they won’t make enough money to keep going.

One example is in the battery business. Batteries are needed for electric cars and to store energy from the sun and wind. A company was about to build a battery plant in the U.S., but now they’re not sure if they can afford it.

Other companies that make parts for wind turbines and solar panels are also rethinking their plans. They’re asking: “Is it still worth it to build in America?”

What About the American Supply Chain?

You might hear the words “American supply chain” in the news. This means making all the parts and tools for clean energy right here in the U.S., instead of buying them from other countries.

A strong American supply chain means:

• More jobs in U.S. factories.
• Faster shipping and lower costs.
• Better control over quality and safety.
• Less risk if something goes wrong overseas.

The tax credits were helping companies build clean energy factories in America. Without them, it’s harder to grow that supply chain. Some companies may go overseas where it’s cheaper to build.

What Can Be Done?

Not everyone agrees with the tax cuts. Some lawmakers and business leaders are speaking up. They want Congress to bring back the clean energy tax credits.

Here are a few ideas people are talking about:

• Bring Back the Credits: Some want to pass a new bill that restores the tax credits for solar, wind, and battery projects.
• Target Small Businesses: Small clean energy startups need help the most. New laws could give special support to them.
• Focus on American-Made Products: Tax breaks could go to companies that make their products in the U.S., helping the American supply chain grow.

Why This Matters to You

You might wonder: Why should I care?

Well, clean energy affects everyone. It keeps our air clean, helps fight global warming, and creates jobs in local communities. If clean energy slows down, the whole country feels it.

Also, electricity bills could go up if we don’t build enough solar and wind power. Clean energy helps keep prices low. And when we rely on other countries for energy, it can lead to delays and higher costs.

What You Can Do

Even though you can’t vote on tax laws, you still have a voice. Here are a few things you can do:

• Talk About It: Share what you learn with friends and family. Let them know how the new law could hurt clean energy.
• Call Your Leaders: You can write or call your local lawmakers and ask them to support clean energy tax credits.
• Support Clean Companies: Buy from companies that use clean energy or make eco-friendly products.