Washington, D.C. – The Business Council for Sustainable Energy (BCSE) and the Clean Energy Business Network (CEBN) released a factsheet today detailing Pennsylvania’s investments in demand- and supply-side energy solutions. The factsheet highlights energy projects driving economic growth in Pennsylvania 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 18 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 Pennsylvania amid skyrocketing demand growth. Participating companies and organizations include the Keystone Energy Efficiency Alliance, the PA Solar Center, Greentech Renewables, Tenaska, Trane Technologies, Schneider Electric, the Polyisocyanurate Insulation Manufacturers Association, 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. Pennsylvania needs more energy now to keep the lights on for homes and businesses – and these tax incentives are unleashing homegrown energy across the state.”
Pennsylvania 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 4.5 to 6.5 TWh by 2026. In the absence of technology-neutral federal tax incentives, Pennsylvania’s electricity prices are projected to increase 8% 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 Pennsylvania $1.34 billion in investment. Lower investment and increased energy bills would result in 26,400 fewer Pennsylvania jobs in 2030 and nearly 29,000 fewer jobs in 2035 than if current tax policies remained.
“Pennsylvania 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.”
“Energy and manufacturing credits are critical tools in achieving energy abundance in the United States,” said Jeannie Salo, Chief Public Policy Officer for Schneider Electric and Vice Chair of the BCSE Board of Directors. “Extending the timelines for transferability and key energy tax credits will inject more certainty into decision making that will fuel the investment to make America more energy resilient, power our AI future, and secure the energy needed to unlock a booming economy.”
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.