Critical Energy Incentives at Risk: NEMA Sounds Alarm over Senate Delay

A pivotal industrial warning lands as NEMA urges swift Senate action to safeguard billions in energy and manufacturing tax incentives now imperiled under H.R. 1.

The National Electrical Manufacturers Association (NEMA) is urging the U.S. Senate to take action. They want to protect and extend key tax breaks that help clean energy and U.S. manufacturing. These tax breaks are at risk because of a bill passed by the House, called H.R. 1. The worry is that this bill could take away tax credits that help clean energy, electric systems for industry, and newer ways to build things. These credits really matter to companies creating new tech and using automation. If the tax breaks are removed, it could slow down clean energy projects. It might also make it tougher for American factories to upgrade and stay strong in a changing market. Factories to stay competitive. NEMA says the Senate needs to act now to keep these programs in place. This is a big deal for businesses trying to keep up with fast changes in the industry. These tax credits push new ideas and help grow important areas—like clean energy and high-tech manufacturing. NEMA’s message is simple: These key incentives need to stay. The Senate can step in and make sure U.S. industry doesn’t slow down but keeps moving forward.

NEMA said the tax breaks at risk—like Section 48C and those for making key electrification parts—aren’t just about saving money. They help bring supply chains back to the U.S. and make the country stronger in clean tech. As the U.S. gets ready to compete worldwide in new types of manufacturing and power systems, changing these policies now could scare off investors and slow down progress in automation. This could hurt everything from chip-making to building EV chargers.

Experts say getting rid of these tax breaks would hurt progress just as factories are starting to use AI and smart tech. NEMA told Senate leaders that changing the rules now could send the wrong message to investors who are betting on the U.S. to lead in clean energy. Many companies have already made plans, hired workers, and built supply chains based on these tax breaks sticking around. A sudden change could slow down projects, mess up supply networks, and hurt growth in high-tech manufacturing. Now, as the Senate decides what to do next, the automation industry is paying close attention. Companies that count on stable rules to plan big, long-term projects might have to rethink everything. That could slow down how fast new tech gets used in American factories.