Texas Faces $87 Billion Loss If Clean Energy Tax Breaks Are Cut, Study Warns

Texas is a big state known for oil, but it’s also a leader in wind and solar energy. Now, a new plan in Washington could change that. A recent study says that if the government takes away clean energy tax breaks, Texas could lose a lot—$87 billion by 2034, to be exact.

Let’s break this down in simple terms so everyone can understand what’s going on and why it matters to you and your family.

What Are Clean Energy Tax Breaks?

Clean energy tax breaks are special rules that help companies and people save money when they use or build energy from things like the sun, wind, and other green sources. These breaks make it cheaper to build solar panels and wind farms. They also help lower the cost of electricity for families.

Right now, the government gives these breaks to encourage clean energy and reduce pollution. But some leaders in Washington want to end or slow down these tax breaks.

What Did the Study Say?

A group called Energy Innovation did a study to see what would happen if these tax breaks went away. Their findings were pretty shocking:

Texas would lose $87 billion from its economy by 2034.
120,000 jobs could disappear.
Families might pay higher bills for gas and electricity.
Less clean energy would be built, which means more pollution from oil and gas.

That’s a big deal for Texas and for families who are already trying to save money.

What Kinds of Jobs Are at Risk?

Jobs in clean energy include people who:

Build solar panels and wind turbines
Fix and maintain clean energy equipment
Work in research and development
Handle sales and customer service in the energy industry

Many of these jobs are well-paying, and they are spread across both cities and small towns in Texas.

If the tax breaks are removed, companies may stop hiring or even lay people off. That means fewer jobs and more families struggling to make ends meet.

How Could It Hurt Texas’s Economy?

Texas has one of the fastest-growing clean energy markets in the U.S. Without tax help, it could become too expensive to keep growing.

Here’s what might happen:

Companies will stop investing in clean energy in Texas.
Some projects may be canceled altogether.
Other states with better tax support may take the lead.
Texas could fall behind in energy innovation.

This could be a big step backward for a state that’s been leading the way in wind power.

What Does It Mean for Texas Families?

If companies stop building clean energy systems, your electric bill could go up. Here's why:

Less supply = higher prices.
Oil and gas prices change often and can go up quickly.
Clean energy helps keep prices stable.

When we use more clean energy, it keeps costs lower and helps the planet. Taking away these tax breaks could hurt your wallet and the environment.

What’s Happening in Washington?

The proposed changes are part of a big plan being discussed in Congress. Some leaders want to cut spending and remove certain clean energy tax benefits. Others want to keep or even grow these tax breaks to support jobs and the environment.

Right now, the Senate version of the bill is trying to slow down the changes instead of removing everything all at once. But even a slower phase-out could still hurt.

What About the Environment?

Clean energy means less pollution. That helps:

Keep our air clean
Protect wildlife
Fight climate change

If Texas stops growing its clean energy industry, pollution could go up. That can lead to more health problems, like asthma or allergies, especially in kids and seniors.

What Can Be Done?

Texans can speak up. Here’s how:

Call your local lawmakers and tell them clean energy matters.
Support companies that use clean energy.
Share the facts with friends and family.

The more people who know what’s at stake, the more likely leaders will listen.

Why This Matters Now

Decisions are being made right now that could change the future of Texas’s economy and energy use. The tax breaks are part of what helped Texas become a leader in clean energy. If they go away, it could mean fewer jobs, higher bills, and more pollution.

But if they stay, Texas could continue to lead in clean energy, protect jobs, and keep costs low for families.