The U.S. House Budget Committee has advanced a major bill that proposes big cuts to government spending on climate and energy programs.
The bill, put forward by Republican leaders, would roll back nearly every provision in the Inflation Reduction Act.
That's a big concern for some solar companies that operate in Hawaiʻi, including the Solaray Corporation. It qualified for an IRA-funded tax credit to build Hawaiʻi's first solar module recycling facility, among others.
Although the bill's current language doesn't repeal that credit directly, it would limit Solaray’s ability to use the credit by making it non-transferable.
Since Solaray is 100% worker-owned, it has no federal tax liability. It can't directly claim a tax credit, but it can qualify for a credit, sell it to another firm, and then put that capital towards the construction of its solar recycling plant.
That transferability helps organizations like nonprofits, schools, religious institutions, and state and local governments bankroll big investments in clean energy.
"It makes renewable energy projects imminently more financeable for these institutions that traditionally have kind of been cut out of that market," said Will Giese, the senior director of government affairs for Solaray.
Giese noted that this is just one possible impact of the House reconciliation bill, which has broad implications for the entire clean energy industry.
"It is really unclear in the current version of the bill what the renewable industry even looks like if it were to pass today — if it even exists," Giese said.
The bill was initially rejected by the House Budget Committee on Friday before passing on a revote late Sunday night. It now proceeds to the House Rules Committee.
