For Immediate Release
June 20, 2025
Job Losses, Economic Risk Bundled into Senate Tax Modifications
New Analysis: 1.5 Million Jobs & $269 Billion at Stake
WASHINGTON—As the U.S. Senate prepares to consider its reconciliation package, how it addresses clean electricity tax credits will have an outsized impact on the future of American energy production and manufacturing. These credits are critical to investment and job creation—projected to catalyze $500 billion in investment by 2030. However, restrictions limiting their use proposed by the Senate Finance Committee could instead throttle that economic opportunity, slowing the addition of power capacity right as demand accelerates.
These technology neutral clean electricity tax credits will spur investments across the country in innovative and growing clean energy technologies, including advanced nuclear deployment, , geothermal expansion, battery production for grid storage, as well as continued growth in wind and solar, which are best positioned to meet near-term demand while keeping prices low.
A new analysis from Greenlight Insights, in partnership with the Center for Climate and Energy Solutions (C2ES), finds that the Senate modifications would stifle investment and result in steep GDP and job loss over the next ten years:
- $269 billion in lost GDP
- $179 billion in lost wages
- 5 million jobs
Read the Full Senate Impact Analysis here.
“The ability to scale and quickly meet the growing clean energy demand of AI, expanding data centers, and electrification will define our economic success over the next decade,” said C2ES Vice President for Policy and Outreach Brad Townsend. “Tax credits have long been recognized—on a bipartisan basis—as a powerful tool to incentivize private sector investment. Crucially, companies that have planned investments need certainty to not only follow through on those investments, but to reassure investors that U.S. energy is a good investment. Pulling the plug on credits companies have planned around will only cede critical economic opportunities to our global competitors.”
C2ES and Greenline Insights earlier this month released a similar analysis of the budget reconciliation package passed by the House of Representatives and the devastating economic impact and job losses of the House version. Read the House impact analysis of the House Modifications that would render tech-neutral tax credits unusable.
To speak with a C2ES expert, contact Alec Gerlach at press@c2es.org.
###