FEDERAL CLEAN ENERGY TAX CREDITS MAKE ENERGY MORE AFFORDABLE – A META-ANALYSIS

This executive summary presents a meta-analysis of research from nonpartisan groups, universities, and government agencies regarding the impact of federal technology-neutral electricity tax credits (§45Y and §48E) on consumerSS. United States household energy bills. The document argues that these credits lower electricity costs by reducing the investment costs for wind, solar, battery, nuclear, and geothermal projects, with utilities passing these savings to consumers. It warns that repealing these credits would increase energy bills for households and businesses, particularly as electricity demand grows due to factors such as data center expansion.

• Repealing the §45Y and §48E technology-neutral electricity tax credits is projected to increase national household energy bills by approximately $6 billion annually in the next five years, rising to $25 billion annually by 2040.
• The impact of repealing these tax credits varies by state, with some households facing annual increases exceeding $500. Specific projections include potential annual bill increases of up to $640 in Missouri, $520 in Arkansas, $480 in Kansas, $460 in Iowa, $460 in Rhode Island, and $400 in Texas.
• Analysis from NERA Economic Consulting indicates that without these credits, U.S. residential electricity prices would be 6.7 percent higher in 2026 and 7.3 percent higher in 2029. This would resultSS result in significant increases in specific areas:S: 21 percent in Wyoming, 17 percent in Washington, D.C., 17 percent in New Mexico, 15 percent in Washington, and 14 percent in North Carolina.
• Other research groups provide varying estimates for the national average annual householdS increase in household energy bills if credits are repealed: $40–$60 in 2030, $56–$150 in 2035, and $140–$220 in 2040.
• The tax credits are widely utilized by the power industry; more than 95 percent of new power plants received support from these credits in 2024, and approximately 90 percent of resources utilities are planning to build over the next four years are receiving this support.

APA

Energy Innovation (2025). FEDERAL CLEAN ENERGY TAX CREDITS MAKE ENERGY MORE AFFORDABLE – A META-ANALYSIS. https://energyinnovation.org/wp-content/uploads/Technology-Neutral-Electricity-Tax-Credit-Repeal-Meta-Analysis-1.pdf

Chicago

Energy Innovation. FEDERAL CLEAN ENERGY TAX CREDITS MAKE ENERGY MORE AFFORDABLE – A META-ANALYSIS. 2025. https://energyinnovation.org/wp-content/uploads/Technology-Neutral-Electricity-Tax-Credit-Repeal-Meta-Analysis-1.pdf.

Wikipedia

{{cite report |author=Energy Innovation |title=FEDERAL CLEAN ENERGY TAX CREDITS MAKE ENERGY MORE AFFORDABLE – A META-ANALYSIS |date=March 2025 |url=https://energyinnovation.org/wp-content/uploads/Technology-Neutral-Electricity-Tax-Credit-Repeal-Meta-Analysis-1.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{energyinnovation2025federal, author = {{Energy Innovation}}, title = {{FEDERAL CLEAN ENERGY TAX CREDITS MAKE ENERGY MORE AFFORDABLE – A META-ANALYSIS}}, institution = {Energy Innovation}, year = {2025}, month = mar, url = {https://energyinnovation.org/wp-content/uploads/Technology-Neutral-Electricity-Tax-Credit-Repeal-Meta-Analysis-1.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }