The American Clean Power Association sharply criticized newly proposed tax provisions in the Senate’s updated budget bill, warning that the measures would undercut clean energy investment, threaten domestic manufacturing growth and lead to higher energy costs for American households.
Late Friday, the Senate introduced a revised legislative text that includes new tax increases targeting domestic energy producers — changes that industry advocates say were added without adequate public review.
‘Midnight Dumping’ of Tax Language
“With no warning, the Senate has proposed new language that would increase taxes on domestic energy production,” ACP CEO Jason Grumet said in a statement Saturday. “In what can only be described as ‘midnight dumping,’ the Senate has proposed a punitive tax hike targeting the fastest-growing sectors of our energy industry.”
Grumet said the last-minute revisions would halt ongoing clean energy investments worth hundreds of billions of dollars and disproportionately affect rural communities, which he called “the greatest beneficiaries of clean energy investment.”
“It is astounding that the Senate would intentionally raise prices on consumers rather than encouraging economic growth and addressing the affordability crisis facing American households,” he said.
Pressure to Meet Holiday Deadline
The Senate is reportedly aiming to pass the budget bill before the July 4 holiday, which is President Joe Biden’s deadline.
However, the ACP urged lawmakers to reconsider the proposed tax increases and allow time to assess their impact.
“We understand the Senate’s desire to meet the President’s July 4 deadline, but the stakes here are very high,” Grumet said. “We urge Senate leadership to strike these last-minute tax increases and to take the time to responsibly analyze the impacts of this new tax regime on American businesses and communities.”
Industry Concerns Over Energy Security, Affordability
The ACP, which represents a broad range of clean energy sectors, including wind, solar, energy storage, and transmission, has consistently advocated for policies aimed at expanding domestic energy production and lowering long-term electricity costs.
The group warned that the proposed tax changes could undermine the administration’s energy security and manufacturing goals.
The Senate budget package, including the contested tax provisions, is expected to face intense scrutiny from both industry groups and lawmakers in the coming days.
