How Trump's Tax Bill Could Cost 830,000 Jobs and Spike Your Energy Bills

A Republican push to dismantle clean energy incentives threatens to cost over 830,000 jobs, raise energy bills for US households, and increase planet-heating pollution, experts warn. The bill, passed by the Republican-held House of Representatives, aims to demolish key components of climate legislation signed by Joe Biden, which has spurred record investment in renewable energy and electric vehicles in the US.

Key Impacts of the Bill

• Tax credits for cleaner cars will end this year.
• Incentives for wind, solar, and nuclear energy projects will be scaled down and eliminated by 2032.
• Clean energy manufacturing tax credits will be axed by 2031.
• Subsidies for home upgrades to cleaner or more energy-efficient appliances will cease after this year.

Robbie Orvis, senior director at Energy Innovation, a non-partisan climate policy thinktank, stated, "This bill is worse than what people envisioned – it pulls the rug out from facilities banking on these incentives, it raises everyday household costs by hundreds of dollars and undercuts any sort of action on climate change."

Economic and Environmental Consequences

• $320bn has already flowed mostly to Republican-held districts for new clean energy development and electric car construction.
• A further $522bn in investment is at risk due to the removal of tax incentives.
• The bill could reduce US GDP by over $1tn over 10 years.
• Energy bills are expected to rise by more than $230 by 2035 for the average household.
• The US will emit 260m tonnes more pollution by 2035, more than the annual emissions of Spain.

Job Losses

• 830,000 jobs could be lost by 2030, including direct jobs in solar panel manufacturing and electric vehicle production.
• 300,000 jobs in the solar and energy storage sectors could be lost by 2028, according to the Solar Energy Industries Association.

Ted Fertik, vice-president of manufacturing and industrial policy at Blue Green Alliance, emphasized, "Killing the tax credits in the Inflation Reduction Act is a direct attack on working Americans."

Political Backlash

Organized labor is increasingly speaking out against the bill. The president of the North America’s Building Trades Unions said, "Job cuts for blue-collar Americans should not foot the bill for billionaire tax cuts."

Additional Impacts

• The Trump administration has also eviscerated rules limiting pollution from cars, trucks, and power plants.
• Combined actions could result in 730m tonnes of extra pollution over the next decade.

Ben King, associate director at Rhodium, noted, "If you’re a solar or wind developer, there’s no reason you’d choose the US rather than China after this."