U.S. Treasury Secretary Janet Yellen highlighted the potential negative impacts of the Biden administration’s end of clean energy tax credits in a speech at Wake Tech Community College in Raleigh, North Carolina. Yellen stressed that such a move would increase costs for American families and undermine job-creating investments in U.S. manufacturing.
Yellen noted that families nationwide have already benefited from $8.4 billion in energy tax credits, which are expected to lower their energy bills over time. The credits are part of the 2022 IRA, which former President Donald Trump criticized. Trump has proposed eliminating those subsidies and redirecting the funds to infrastructure projects like roads and bridges.
The Treasury Secretary warned that cutting the IRA’s clean energy tax credits would be a “historic mistake,” raising costs for working families and jeopardizing a recent surge in manufacturing investment that has created many jobs that don’t require a college degree.
Yellen also noted that the removal of these tax credits could benefit China, noting that the country has invested heavily in its pure power industries. She also mentioned the Biden administration’s plans to increase tariffs on pure power-related imports from China to encourage the growth of domestic supply chains.
Yellen did not mention Trump directly in her speech, but she emphasized consumer savings from IRA tax credits, which aligns with Vice President Kamala Harris’ economic proposals. Harris, who is neck and neck with Trump in North Carolina for the Nov. 5 presidential primary, is focused on addressing Americans’ rising cost of living.
Yellen also touched on the overall economic outlook, noting 3% growth in the second quarter, falling inflation and low unemployment, while acknowledging that the administration’s priority economic concerns were high health care, housing and energy costs.
Treasury data showed that in North Carolina alone, 90,000 families claimed more than $100 million in residential energy tax credits, averaging $5,000. Additionally, $60 million in energy efficiency tax credits were claimed, averaging $880 for upgrades such as heat pumps and insulation.
During her visit to Wake Tech, Yellen, who prepares staff for industries such as electric vehicles (EVs) and efficient building technologies, experienced driving a Mustang Mach E, a RESIDENTIAL that no longer qualifies for the $7,500 U.S. tax credit under an IRA because of Chinese components in its battery.
Reuters contributed to this article.
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