Washington, D.C. – The Business Council for Sustainable Energy (BCSE) and the Clean Energy Business Network (CEBN) released a factsheet today detailing North Carolina’s investments in demand- and supply-side energy solutions. The factsheet highlights sustainable energy projects driving economic growth in North Carolina as Congress considers budget reconciliation proposals that would impact jobs and economic development in the state by altering and drastically limiting the timeline of key energy tax credits.
Alongside the factsheet release, BCSE and CEBN will host a press briefing this morning, June 17 at 11:00 am ET, in which energy industry leaders will discuss the importance of federal energy tax credits for driving investment, boosting economic growth, and expanding energy resources in North Carolina amid skyrocketing demand growth. Participating companies and organizations include the NC Sustainable Energy Association, Capital Power, Greentech Renewables, NorthStar Clean Energy, Trane Technologies, and the Fuel Cell & Hydrogen Energy Association. Click here to register.
“Companies rely on long-term business certainty in the tax code to plan projects and allocate capital,” said BCSE President Lisa Jacobson. “As we face an era of unprecedented energy demand growth, now is not the time to disrupt the market by making unnecessary changes to the tax structure. North Carolina needs more energy now to keep the lights on for homes and businesses – and these tax incentives are unleashing homegrown energy across the state.”
North Carolina is already experiencing sharp increases in energy demand coupled with concerns about rising energy costs. The state’s energy demand is projected to increase by 2 to 4 TwH by 2026, driven by new data centers. In the absence of technology-neutral federal tax incentives, North Carolina’s electricity prices are projected to increase 17% by 2026, according to research by NERA Economic Consulting.
Clear, predictable, and long-term tax policy is essential for market confidence that will get projects deployed quickly and urgently. The repeal of bipartisan federal tax credits for energy manufacturing could risk North Carolina losing $20.72 billion in investment and 17,515 good-paying energy jobs across at least 34 projects in the batteries, clean technologies, electric vehicles, solar, and grid and transmission industries.
“North Carolina is emerging as an attractive place for energy businesses, from startups to manufacturers to project developers, creating good-paying jobs and taxpayer revenue in communities across the state,” said Lynn Abramson, President of the Clean Energy Business Network. “But these growth industries are in jeopardy as Congress considers reopening the existing energy tax code. Policy certainty is essential for fostering a pro-business environment, especially for small companies with limited resources.”
“North Carolina continues to grow rapidly and cement its place as the best state in the nation to do business,” said Josh Brooks, Chief of Policy Strategy and Innovation for the NC Sustainable Energy Association. “To achieve this, it’s crucial we keep the very incentives that have driven such development in our state and support the greater clean energy economy.
“Energy sector credits, as well as credit transferability, must be supported at the federal level to continue to drive unprecedented private investment into North Carolina’s economy,” he added. “This economic development benefits North Carolina manufacturers, workers, and families. The removal of federal energy credits will drive the costs of meeting rising energy demand higher for both businesses and households in the state and put jobs and development at risk.”
As the Senate now considers changes to the tax code through budget reconciliation, BCSE and CEBN will share industry perspectives with policymakers and urge that the proposals remove burdensome red tape and provide a smoother transition for businesses currently utilizing the energy tax credits. The coalition’s reconciliation bill priorities can be found here.