Trump Tax Bill Slashes Solar Jobs, Clean Energy Credits \ Newslooks \ Washington DC \ Mary Sidiqi \ Evening Edition \ As Trump’s tax and spending bill advances, clean energy companies warn of massive job losses. The legislation would kill residential solar tax credits and scale back wind and utility-scale solar incentives. North Carolina’s renewable sector, backed by billions in investment, could see deep layoffs and industry contraction.
Quick Looks
- GOP bill ends 30% residential solar tax credit in 2024
- Trump calls clean energy aid a “green new scam”
- Bill would phase out utility-scale solar and wind incentives
- North Carolina solar firms warn of major layoffs
- CEO says 50–55 jobs may be cut due to changes
- Sen. Thom Tillis voted no, won’t seek reelection after Trump pressure
- $14 billion in clean energy projects already delayed or canceled
- Critics say bill shifts benefits from households to corporations
Deep Look
As congressional Republicans push President Donald Trump’s sweeping tax and spending cut package toward final passage, the clean energy industry—especially residential solar—is bracing for a major blow. The legislation proposes the elimination of key tax credits that have supported solar adoption across the U.S., prompting warnings of job losses and stalled investment from renewable energy executives and analysts.
In Raleigh, North Carolina, Will Etheridge, CEO of Southern Energy Management, warned his 190 employees in a blunt email this week that the company is likely to suffer layoffs if the bill becomes law. “These changes would almost certainly include the loss of jobs on our team,” Etheridge wrote. “I’m telling you that because you deserve transparency and the truth — even if that truth is uncomfortable.”
At the heart of the issue is the bill’s plan to terminate the 30% federal tax credit for residential solar installations by the end of 2024. That credit, a key component of President Joe Biden’s Inflation Reduction Act, was initially designed to remain in place through at least 2032 to help households switch to renewable energy.
Trump, however, has derided such policies as part of what he calls the “green new scam,” arguing that federal dollars are being misused to prop up a “globalist climate agenda.” Under his proposal—known as the “Big Beautiful Bill”—renewables would face broad cuts. Utility-scale solar and wind projects would see their tax incentives phased out more gradually, but the impact on residential solar would be immediate.
Industry experts and clean energy advocates say the damage could be swift and far-reaching.
“The residential solar industry is going to be absolutely creamed by this,” said Bob Keefe, executive director of E2, a business group advocating for clean energy and pro-environment policies. Keefe noted that the proposal would reverse years of progress, undercut private-sector investment, and eliminate thousands of jobs nationwide.
North Carolina, a state that has emerged as a clean energy hub, is already feeling the pressure. More than $20 billion has been invested in solar and related technologies there in recent years. Etheridge, whose company specializes in solar installations and energy-efficient building solutions, said his business model relied on the long-term stability of federal tax incentives.
“I made a decision from being an employee to taking out a loan from my grandmother to buy into my business and put my house on the line,” he said. “I did that in part because of the stability of the tax credits.”
With that stability in question, Etheridge estimates he may have to lay off as many as 50 to 55 employees if the legislation becomes law. He now plans to explore diversification to preserve what remains of his company.
The solar industry’s concerns were shared by Karl Stupka, president of NC Solar Now, another Raleigh-based firm employing about 100 people. He said about 85% of his company’s revenue comes from residential installations, which would be hardest hit. “They took it away from every average American normal person and gave it to the wealthier business owners,” Stupka said of the tax changes, calling them a shift away from middle-class homeowners and toward corporations.
If the bill passes, Stupka expects to rush unfinished jobs before the tax credit ends, followed by potentially laying off half his workforce. “It would cause a pretty severe shock wave,” he warned.
The political dynamics behind the legislation are also fueling controversy. Republican Sen. Thom Tillis of North Carolina was one of only three GOP senators to vote against the bill. Tillis faced intense pressure from President Trump, who signaled support for a primary challenger after the senator expressed doubts about the bill’s impact on clean energy and healthcare. Within days, Tillis announced he would not seek reelection.
The larger debate centers on the role of federal subsidies in fostering clean energy growth. Critics like Adam Michel of the libertarian Cato Institute argue that any industry relying on taxpayer support may be fundamentally unsustainable. “If you require a money-spigot from Washington to make your business viable, it probably shouldn’t have been in business in the first place,” Michel said.
He acknowledged that while some companies may contract, he believes the market will “right-size” and displaced workers will transition to other industries. However, many in the renewable sector argue that government support is essential to transitioning the U.S. economy toward cleaner, more sustainable energy sources—and that withdrawing it abruptly punishes the middle class while favoring entrenched fossil fuel interests.
Even before the current bill gained momentum, clean energy investment had already started to stall. E2 reported in May that $14 billion in clean energy projects had been postponed or canceled due to uncertainty around tax incentives and market instability.
The Senate’s final version of the bill softened some of its earlier provisions, such as eliminating a proposed tax on certain utility-scale solar and wind projects. It also grants commercial developers a grace period to begin construction before their tax credits phase out. But those adjustments did little to relieve concerns in the residential sector, where the loss of the 30% credit would hit immediately.
For companies like Southern Energy Management and NC Solar Now, the potential rollback of clean energy incentives is more than just a policy issue—it’s a direct threat to their viability and the jobs of hundreds of skilled workers. As the House prepares for a final vote, executives, employees, and clean energy advocates are urging lawmakers to reconsider what they see as a catastrophic turn for a thriving American industry.
Trump Tax Bill Slashes Trump Tax Bill Slashes
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