Protect clean energy tax credits

February 17, 2025  

Background: An upcoming budget bill in Congress threatens to cut popular clean energy tax credits to pay for expanded tax cuts and increased immigration enforcement. Federal tax credits for energy efficiency in homes were instituted with bipartisan support in 2005, saving households money on energy bills and reducing energy use. In recent years, two bipartisan bills allocated tax credits on solar panels, wind energy and electric vehicles—incentives now in jeopardy.

Clean energy tax credits are creating tens of thousands of jobs, meeting rapidly growing energy needs, reducing the strain on the energy grid, and saving households and non-profits money.  By 2024, more than 2,500 houses of worship had solar panels. By 2030, these tax credits, along with other IRA programs, could help reduce overall emissions by 30-43% below 2005 levels.

Repealing the tax credits would mean the loss of over $300 billion in private investment in the clean energy sector and close to 100,000 jobs over the next 15 years.  Additionally, clean energy projects that have already broken ground, such as battery production plants, could be canceled.

Faith reflection: “Your steadfast love, O Lord, extends to the heavens, your faithfulness to the clouds. Your righteousness is like the mighty mountains; your judgments are like the great deep; you save humans and animals alike, O Lord.” (Psalm 36:5–6)

Take action: Urge Congress to protect clean energy tax credits

Photo above: Employees from local solar company Sol de la Montaña, bolt down solar panels on the roof of Plaza Bernard’s home in Adjuntas, Puerto Rico in May 2024. MCC East Coast partners with Casa Pueblo, a nonprofit organization based in Adjuntas, Puerto Rico, to bring energy security to vulnerable families in rural Puerto Rico through solar energy systems. MCC photo/Laura Pauls-Thomas