Feb 5 (Reuters) - U.S. clean-energy companies are headed
to Capitol Hill on Wednesday to urge Republican lawmakers not to
kill lucrative tax credits contained in former President Joe
Biden's landmark climate change law.
Hundreds of representatives from firms in the solar, wind
and other renewable-energy sectors are meeting with members of
Congress from both parties to tout their role in creating jobs
and investment, lowering electricity costs and meeting soaring
power demand from data centers.
Republican areas have benefitted from the Biden
administration's Inflation Reduction Act since its enactment in
2022, with more than half of announced clean-energy, battery and
vehicle-manufacturing projects located in Republican
congressional districts.
Despite this, the clean-energy sector has been on high alert
since the election of President Donald Trump, whose first
executive orders prioritized unleashing U.S. fossil-fuel
production, paused federal wind projects and froze funding for
clean-energy projects from two Biden-era laws.
Trump has set his sights on scaling back the IRA, which
contains billions in tax credits to support the expansion of
clean-energy projects.
Some Republicans have introduced legislation to repeal parts
of the bill, though more than a dozen Republican House members
have urged party leadership to protect lucrative tax credits
that benefit their districts.
The Republican-led Congress could deploy a legislative
measure known as reconciliation to avoid relying on Democratic
votes. Biden used the same tactic to pass the IRA.
The trade groups behind the lobbying effort include the
solar industry's Solar Energy Industries Association, offshore
wind group Oceantic and the U.S. Green Building Council, among
others.
The industry is expected to meet with several Republicans
who signed a letter to House Speaker Mike Johnson last year
expressing support for tax credits that have spurred investment
in projects and factories. The letter was led by Representative
Andrew Garbarino of New York.
More than 1,800 companies also signed letters to lawmakers
urging them to preserve critical incentives. They include French
clean energy project developer EDF Renewables, residential solar
company Sunnova and solar panel maker Qcells, a
division of Korea's Hanwha.
"Businesses have relied on these tax policies to plan
investments, hire workers, and change their product lines,"
dozens of companies wrote in a letter to Congressional
leadership.
"Business leaders have acknowledged that repeal will cause
many to eliminate staff or to move their business abroad all
together."