Wisconsin's Clean Energy Progress Threatened by Proposed U.S. House Tax Cut Legislation

Strategic Insights -

Wisconsin's growing clean energy sector, which has seen unprecedented investment and job growth since the passage of the 2022 Inflation Reduction Act (IRA), is under threat from a U.S. House of Representatives proposal to repeal clean energy tax credits. The tax credits, which have spurred investment and employment in the state's clean energy industry, are part of the IRA and were established to encourage the conversion to clean energy. Environmental and labor advocates warn that the repeal of these credits could cost thousands of jobs in Wisconsin and undermine the state's progress toward cleaner energy.

Key Takeaways:

  • The U.S. House of Representatives is proposing to repeal clean energy tax credits as part of a tax cut legislation, which would cost thousands of jobs in Wisconsin and undercut the state's progress toward cleaner energy.
  • Since the passage of the IRA, Wisconsin has seen $933 million in clean energy and transportation private-sector investments, along with just over $2 billion from federal grants and loans.
  • The repeal of clean energy tax credits would cost nearly 5,200 Wisconsin jobs in 2030 and more than 6,400 jobs in 2035, compared to current policies.
  • Without federal support, $5.4 billion for 15 planned Wisconsin clean energy projects could be in jeopardy, with 12 of those projects (80%) located in congressional districts represented by Republicans.
  • The clean energy tax credits have created good family-sustaining union jobs across Wisconsin, with the International Brotherhood of Electrical Workers Local 494 reporting that the credits have delivered on their promise.
  • The IRA also included a provision that extends the value of the tax credits to nonprofit organizations and government agencies, allowing the Menasha Joint School District to qualify for a $4 million reimbursement from the federal government for installing rooftop solar energy and geothermal energy systems.
  • Advocates are calling on Congress to protect the clean energy initiatives, stating that the repeal of the tax credits would be devastating to many and would put thousands of jobs at risk and hurt a growing industry.

Statistics:

  • $933 million in clean energy and transportation private-sector investments in Wisconsin since the passage of the IRA
  • Just over $2 billion in federal grants and loans for clean energy and transportation projects in Wisconsin since the passage of the IRA
  • 61 new clean energy and transportation projects that got underway in Wisconsin since the passage of the IRA
  • 45 manufacturing American-made products in Wisconsin since the passage of the IRA
  • 5,200 jobs in Wisconsin at risk in 2030 due to the repeal of clean energy tax credits
  • 6,400 jobs in Wisconsin at risk in 2035 due to the repeal of clean energy tax credits
  • $5.4 billion in federal support for 15 planned Wisconsin clean energy projects at risk due to the repeal of clean energy tax credits

Sources:

  • Politico: "House GOP looks to gut Biden's climate incentives in megabill proposal"
  • Forward Together Wisconsin: "Protecting Clean Energy Jobs in Wisconsin"
  • Wisconsin Examiner: "Wisconsin joins suit against Trump's order cutting off vehicle charging station funds"
  • Solar Energy Industries Association: "Statement on Proposed Reconciliation Legislation"
  • Innovation Policy & Technology: "Wisconsin IRA Repeal Analysis, March 2025"
  • Climate Power: "April 2025 Wisconsin Clean Energy Jobs"
  • Wisconsin Examiner: "Federal clean energy program includes incentives for nonprofits"