A new report from the BlueGreen Alliance cautions that the Republican-led budget bill, recently approved by the House, could put approximately 2 million jobs at risk by eliminating domestic clean manufacturing tax credits and increasing the national debt to finance cuts favoring wealthy individuals.
The analysis estimates that removing manufacturing credits could directly threaten around 300,000 jobs. It further warns that another 1 million indirect jobs ā including supply-chain roles linked to electric vehicle and clean energy production ā and 643,000 induced jobs, such as those tied to increased regional economic activity, would also be endangered.
āThe job-creating track record of the clean manufacturing tax credits is undeniable ā¦ repealing these credits will hurt working Americans,ā said TedāÆFertik, BlueGreenās vice-president of manufacturing and industrial policy. āWe hope the Senate will see reason and reverse these damaging provisions.ā
The report highlights the significant economic impact of U.S. clean energy legislation enacted under the Biden administration, including the Infrastructure Investment and Jobs Act and the Inflation Reduction Act. These laws facilitated over $210āÆbillion in electric vehicle investments and supported 230,000 direct EV-related jobs.
Jason Walsh, BlueGreenās executive director, stressed the broader consequences for workers: āThese numbers make it even more clear, if this bill becomes law, workers are the ones who will pay the price ā¦ selling out workers to pay for a billionaire tax break.ā
The data suggest that certain states would be especially hard hit. California could lose 329,000 jobs, while Georgia, Tennessee, and South Carolina ā key players in the U.S. battery manufacturing corridor ā could see 258,000, 140,000, and 135,000 jobs disappear respectively.
The bill now heads to the Senate, where lawmakers from manufacturing-dependent states will weigh the potential economic repercussions against proposed tax cuts and expanded federal debt.