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How FEOC & Early Sunset Threaten US GDP and Economy

For Immediate Release
June 3, 2025

Contact: Alec Gerlach, GerlachA@c2es.org, 517-214-7415

Watch – How Tech-Neutral Credit Restrictions
Could Kill Clean Energy Projects Nation-wide

Watch June 3 Recording: Here

WASHINGTON—As the Senate considers the reconciliation package this month, they’ll consider whether to take up the House-approved version, which would render the tech-neutral tax credits virtually unusable. These pivotal credits are poised to drive transformative investments in clean energy projects across the country, in red and blue states alike. The Center for Climate and Energy Solutions (C2ES), joined by research partner Greenline Insights, presented the findings of an analysis of the House-approved modifications and the resulting economic costs and job losses.

Watch the Recording: Virtual Briefing

The restrictions undercut promising energy projects and the expansion of manufacturing in the United States that will require the energy these project produce – and at significant cost to businesses and workers across the country:

Commence construction and “placed in service” requirements:

  • $283 billion in lost GDP
  • $193 billion in lost wages, and
  • More than 1.6 million jobs-years wiped out

FEOC Component-Level (“Material Assistance”)

  • $259 billion in lost GDP
  • $176 billion in lost wages
  • Nearly 1.6 million jobs

“Transferability” restriction on the market for project financing would:

  • Eliminate $49 billion in GDP
  • Cost $28 billion in lost wages, and
  • Nullify 237,000 created jobs

Read the Full Analysis here.

Briefers include:

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About C2ES: The Center for Climate and Energy Solutions (C2ES) works to secure a safe and stable climate, by accelerating the global transition to net-zero greenhouse gas emissions and a thriving, just, and resilient economy. Learn more at www.c2es.org.

This release was updated on June 4, 2025 to include a briefing memo analyzing economic and jobs impact. See the briefing memo here. 

 

 

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