A pro-clean energy group says the reconciliation budget bill passed by the U.S. House would significantly hurt Michigan's economy and its clean energy progress.
The bill would phase out federal tax credits for both industry clean energy projects, and swiftly end individual consumer tax credits for things like solar panels and electric vehicles by the end of 2025.
It would also require manufacturers to conduct extensive supply chain checks for any foreign connections, particularly from China and Russia, for components used in clean energy projects, and set federal tax credit application timelines that will be virtually impossible to meet, according to the group, thus "kneecapping" investment in clean energy industries across the U.S.
The advocacy group, Washington D.C.-based Climate Power, said studies estimate the bill would reduce Michigan's economic output by several billion dollars by 2035, raise consumer electricity bills an extra 10%, and virtually halt new clean energy projects in the state for solar, wind, and battery storage.
That would act as a dramatic obstacle for Michigan's plan to achieve net zero carbon emissions by 2050. The state hopes to eliminate the majority of its CO2 emissions by then, and offset the rest with technologies and programs that remove CO2 from the environment in order to avert some of the worst effects of climate change.
Michigan Congressman John James was among a group of Republicans who initially objected to parts of the bill, but in the end he and the other GOP representatives all voted to advance it to the U.S. Senate. House Republican leaders said the legislation targets wasteful spending.
The Senate and House will have to pass a unified bill before the U.S. reaches its next debt ceiling, which could happen sometime between mid-July and August.
