On May 22, the U.S. House of Representatives passed budget reconciliation package H.R. 1 — also known as the “One Big, Beautiful Bill Act” (BBB). Many of its provisions aim to cut down on federal spending by targeting climate-related tax credits, which are likely to put a dent not only in the operations of renewable energy and home efficiency organizations in the Roaring Fork Valley, but cross-county efforts to reduce emissions as much as possible.
The BBB plans on reducing over $500 billion in federal spending by cutting tax credits for clean energy production investment, electric vehicle rebates, residential clean energy investment and energy efficient home improvements.
While many of the aspects of the bill are expected to change as it moves through the Senate, the first budget draft released by the Senate this week maintained the cuts to solar and wind projects by 2028. However, hydrothermal, geothermal and nuclear energy will continue receiving tax credits until 2036.
Solar energy
Sunsense Solar recently celebrated its 35th anniversary and according to president Scott Ely, his company has seen plenty of ups and downs in that time. “We see this as yet another one,” Ely said, “and one that we will work our way through. We’re not sounding the alarm that we’re going to close up shop.”
While Ely sees the reduction of tax credits as concerning, Sunsense has other streams of revenue. “We would likely ramp up our service side, our commercial/industrial side, our storage side, even off-grid,” Ely said.
Maintenance of existing energy systems will remain unaffected by the changes in federal funding, and in its many years of operation, Sunsense has created a vast network of renewable energy systems to maintain. Working in resort areas, Ely also said that many of his clients have the resources to invest in solar even without tax credits.
Additionally, Sunsense is part of a much larger, solar-buying cooperative called Amicus, which does $1.75 billion in business annually. Being part of Amicus will mitigate some of the economic impact.
Other provisions in the bill pose significant concerns for Sunsense. One potential regulation would render a renewable energy project ineligible for tax credits if the project uses components from federally determined foreign adversaries. “So basically that means we’re not gonna be able to do any project, because everything we do and everything we use … has a chip in it or some bolt that comes out of China,” Ely said, adding, “Obviously we want to use domestic parts whenever possible.”
Amicus also employs lobbyists of its own which, for the past week, have been working in Washington, D.C. to convince senators to preserve the tax credits and change this legislation. According to the latest draft, however, it seems that a majority of senators remain unconvinced. This Monday, stock prices in solar energy tumbled after the draft legislation was released.
Energy efficient homes
Aspen-based nonprofit Community Office for Resource Efficiency (CORE) expects its energy-conscious clientele to be impacted by tax credit cuts.
One of CORE’s primary missions is to help homeowners and business owners increase energy efficiency in their buildings by helping them apply for and acquire as many tax incentives and rebates as possible. Incentives can come from local energy producers — like Holy Cross — as well as from the state and federal government. Because of this model, changes in tax credits for renewable energy won’t impact CORE’s revenue and will instead land on its clients directly.
“We’re grateful that we have a community that’s committed to climate action and sustainability,” said Jami McMannes, CORE’s communications and engagement manager. “And a lot of our funding is reliant on local partners and not so much the federal administration.”
CORE also provides its own grants for energy efficient construction independent of federal funding. “We adapt regularly to meet the needs of the community,” said McMannes, “and so if there was a greater need for renewable energy projects, there’s the opportunity for us to evaluate that need and improvise support from CORE’s end.”
As town governments and counties throughout the Roaring Fork Valley have taken pledges to reduce carbon emissions over the next several decades, CORE remains prepared to deal with policy changes coming down from Washington. “We’ll be here standing by,” said McMannes.