Yellen says ending Biden tax incentives would be ‘historic mistake’ for states like North Carolina

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This article was published 05/09/2024 (457 days ago), so information in it may no longer be current.

WASHINGTON (AP) — Treasury Secretary Janet Yellen is warning voters in the battleground state of North Carolina that they could lose jobs if Republicans weaken a signature Biden administration law that encourages investments in manufacturing and clean energy.

Yellen says that Republican-dominated states like North Carolina are greatly benefiting from tax incentives under the 2022 Inflation Reduction Act and that eliminating them would be a “historic mistake,” according to a draft of a speech she will give Thursday at a community college in Raleigh. The Treasury Department released the remarks ahead of the address.

North Carolina has emerged as a key battleground this election cycle between Republican former President Donald Trump and Democratic Vice President Kamala Harris, where Trump ultimately won North Carolina in the 2020 presidential election.

Yellen says Treasury data shows that 90,000 North Carolina households claimed more than $100 million in residential clean energy credits and $60 million in energy efficiency credits.

“Rolling them back could raise costs for working families at a moment when it’s imperative that we continue to take action to lower prices,” Yellen says in her speech. “It could jeopardize the significant investments in manufacturing we’re seeing here and across the country, along with the jobs that come with them, many of which don’t require a college degree. And it could give a leg-up to China and other countries that are also investing to compete in these critical industries.”

“As we see clearly here in North Carolina, this would be a historic mistake,” she says.

Some Republicans have called on their leaders to reconsider repealing IRA energy tax incentives.

A group of 18 House Republicans in August called on House Speaker Mike Johnson to reconsider efforts to eliminate them.

“Prematurely repealing energy tax credits, particularly those which were used to justify investments that already broke ground, would undermine private investments and stop development that is already ongoing,” the letter reads. “A full repeal would create a worst-case scenario where we would have spent billions of taxpayer dollars and received next to nothing in return.”

But Rep. Chip Roy, R-Texas, tweeted on social media site X that the lawmakers who signed the letter want to “preserve so-called ‘green’ handouts to Democrats’ corporate cronies.”

“The GOP must ignore K-Street lobbyists and refuse to fund the climate corporate cronies destroying our country,” he said.

The Republican case against the Inflation Reduction Act hinges on the argument that the spending is wasteful and benefits China.

IRS data released in August states that 3.4 million American families have claimed $8.4 billion in residential clean energy and home energy efficiency tax credits in 2023 — mostly towards solar panels and battery storage.