{"id":5720,"date":"2025-06-09T23:27:35","date_gmt":"2025-06-09T23:27:35","guid":{"rendered":"https:\/\/shoals.com\/en\/?p=5720"},"modified":"2025-09-08T22:05:43","modified_gmt":"2025-09-08T22:05:43","slug":"gut-the-american-energy-tax-credits-at-your-own-risk-whats-at-stake-for-tennessee-and-america","status":"publish","type":"post","link":"https:\/\/shoals.com\/en\/insights\/gut-the-american-energy-tax-credits-at-your-own-risk-whats-at-stake-for-tennessee-and-america\/","title":{"rendered":"Gut the American Energy Tax Credits at Your Own Risk: What\u2019s at Stake for Tennessee and America"},"content":{"rendered":"\n
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The dismantling of the Inflation Reduction Act (IRA) is a threat to American manufacturing, energy security, and economic growth. The energy incentives in the IRA have driven massive investment in both domestic manufacturing and deployment of critical energy resource projects. The current version of the \u201cBig Beautiful Bill\u201d is effectively placing bets on fossil fuels and longer-development energy technologies like nuclear<\/a>, for the U.S. to achieve energy dominance. These bets are against all odds. If we pick winners and losers in the race to energy dominance, the U.S. will certainly fall behind China.<\/p>\n\n\n\n

Anyone who has spent their career in clean energy knows that the road has not been easy to travel. I began my career in energy in 2014 working in residential solar, where we often called it the \u201csolar coaster.\u201d The industry was notoriously volatile – its adoption and growth rising and falling with the whims of state-level incentives and regulatory shifts. But since the passage of the IRA, we\u2019ve seen something that once felt impossible: policy certainty for what was supposed to be a decade. That stability has catalyzed a wave of investment in U.S. clean energy – spurring growth in domestic manufacturing, accelerating project deployment, and unlocking innovation at a scale we\u2019ve never seen before.<\/p>\n\n\n\n

We must recognize that there is a strange and short-sighted phenomenon happening right now. Energy demand is growing for the first time in our lifetime while the House is trying to pass a bill that upends our ability to add enough energy <\/a>to our grid. This does not have to be the path we take. What is needed to continue the resurgence in domestic energy manufacturing to meet the coming massive increase in demand? Glad you asked.<\/p>\n\n\n\n

Number 1: Section 45X cannot be viewed in a vacuum<\/h3>\n\n\n\n

Section 45X, a tax credit that incentivizes U.S. manufacturers to produce clean energy components, is a cornerstone of the IRA\u2019s domestic energy manufacturing strategy. It has already spurred the largest expansion of domestic manufacturing for Solar and Battery Energy Storage (BESS) products in U.S. history. Some proof points:<\/p>\n\n\n\n