Why Congress can’t pull the plug on Montana’s clean energy progress

On May 22, the House of Representatives voted to pass a budget bill that drastically cuts America’s clean energy tax credits. I’m disappointed. 

Make no mistake: These cuts will hurt Montana if they go on to become law. Experts are already warning that these changes would raise energy costs for American households, increase pollution, and threaten growing economic investments we’ve seen in Montana. The House passage of this bill just put these investments at risk. 

These tax credits have been working. Since 2022, Montana has benefited from $2.4 billion in specific investments covering 14 projects, and creating 3080 jobs. Mayors and county commissioners have been writing to our Montana delegation asking them to keep these tax credits because they are so beneficial. 

The legislation has overwhelmingly helped Republican-held districts—78% of the funding has gone to rural and suburban areas held by the GOP. That includes Montana, where companies like Northwestern Energy (MT Hydro), Calumet/Montana Renewables, and NextEra, among others, have announced major investments thanks to these tax credits. 

Counties from Cascade to Custer are thrilled - the tax revenues generated by the companies’ projects enable the counties to make large-scale renovations, build civic centers, and keep roads, bridges, and schools in great shape. If the tax credits are left intact, they could assist more companies to implement projects in all 56 counties, generating hundreds of thousands of dollars in property taxes per year—money the counties won’t have to tax their citizens. 

But that success story could unravel quickly. The legislation is now in the Senate’s hands, and the House passage has set them on a path toward drastic cuts. 

If the cuts become law, energy prices will rise. Rolling back these tax credits means Montana ratepayers will face electricity prices that are up to 7% higher in the coming years. 

Manufacturing will slow. Phasing out tax credits that support clean-energy manufacturing will jeopardize long-term projects like upgrading and building transmission lines, hydroelectric power expansion, solar/wind farm projects, or even a potential nuclear plant in Colstrip currently being discussed in town hall meetings. 

Households and local businesses will take a hit. A rollback of tax credits for home energy upgrades like rooftop solar is a blow to Montana’s residents who’ve been using these tools to cut energy bills. Incentives have made it easier for homeowners and ranchers to install solar panels, save money, and even help stabilize America’s power grid. But those benefits—and the local businesses that depend on them—are in jeopardy if Congress moves forward with these cuts. 

But, if they are protected, it would be a huge boost to Montana’s economy over the next decade. Analysis by American Clean Power and ICF estimates that continuing clean energy incentives will add $8 billion  to the state’s economy from 2025-2035 and support 5,200 full-time jobs in Montana annually. That’s real money and real livelihoods for Montanans. 

Encouragingly, a growing number of Republican members of Congress are speaking up. Four Republican Senators recently sent a letter to leadership last month saying repeal would “lead to significant disruptions for the American people and weaken our position as a global energy leader.” Sen. Kevin Cramer (R-ND) wants to keep tax credits such as 45Q for carbon capture and 45U for existing nuclear power to also help reduce emissions while helping maintain dependable, affordable electricity. 

Clean energy tax credits are working for Montana. Undoing them now — as the House just voted to do — would be reckless and harmful. I urge Senators Daines and Sheehy to work with their colleagues in the Senate to protect all these tax credits. 

Angie Winter, Kila, volunteers with Citizens’ Climate Lobby and coordinates the Flathead Valley CCL chapter.