Carmichael Appeals to Trump, Congress to Maintain Energy Tax Credits
TL/DR –
Mitch Carmichael, a former state senator and leader of the advocacy organization Built for America, is lobbying President Donald Trump and Congress to maintain energy tax credits, asserting that they are crucial for restoring manufacturing in the US. Carmichael’s stance is in contrast to U.S. Sen. Shelley Moore Capito who believes that the energy tax credits require reevaluation or revocation. The pending One Big Beautiful Bill Act, a reconciliation package, could terminate tax incentives for wind, solar, hydrogen projects, and phase out tax credits for new electric vehicle purchases, resulting in the loss of over $522 billion in investments facilitated by the 2022 Inflation Reduction Act (IRA).
Former State Senator Urges Maintenance of Energy Tax Credits
Former West Virginia state senator, Mitch Carmichael, urges President Trump and Congress to maintain energy tax credits, despite U.S. Sen. Shelley Moore Capito’s belief that some of these credits need review or repeal.
Carmichael, former leader of West Virginia’s economic development initiatives, heads the new advocacy organization, Built for America. He’s appealing to the Trump administration not to roll back energy tax credits that aid the national manufacturing sector.
During Carmichael’s term as the first secretary of the new Department of Economic Development, he facilitated the introduction of major manufacturers to West Virginia. These include the Form Energy grid battery project in Weirton and the Berkshire Hathaway/Timet titanium melt facility near Ravenswood.
These projects, and many others across the nation, have benefited from energy tax credits within bills signed by former President Joe Biden, including the 2022 Inflation Reduction Act (IRA). Carmichael emphasizes these tax credits are key to Trump’s goal of rejuvenating U.S. manufacturing.
In January, Trump ordered all federal agencies to pause fund disbursement appropriated through the 2022 IRA or the 2021 Infrastructure Investment and Jobs Act. Last month, the U.S. House of Representatives passed H.R. 1, named the One Big Beautiful Bill Act, in a 215-214-1 vote.
The bill, a budget and spending reconciliation package, extends the 2017 tax cuts set to expire at the end of 2025. It includes nearly $1.5 trillion in spending cuts, including work requirements for Medicaid benefits and the elimination of several tax credits made possible by the IRA.
Carmichael asserts that these tax credits are linked to performance rather than politics, rewarding businesses that complete major energy projects and generate employment.
“Unlike mandates…these credits are performance-based and results-driven. They support an all-of-the-above energy approach, empowering innovation in nuclear, geothermal, carbon capture, and other emerging technologies,” Carmichael stated.
Continuing on that note, Carmichael warned that repealing the tax breaks would favor rival companies in the energy sector, such as those in China. In response, Built for America has launched a $2 million ad campaign to persuade Congress and the White House to reconsider some of the proposed cuts.
On the other hand, Capito, R-W.Va., chairwoman of the Senate Environment and Public Works Committee, has criticized the energy tax credits within the IRA. She believes these credits need recalibration and reconsideration, particularly the 45V hydrogen tax credit created by the IRA.
“Everything was tilted towards clean energy, and it was just incredibly lopsided and incredibly generous, so those need to be scaled back, and some of them absolutely probably need to be stopped immediately,” Capito said.
She has proposed regional hydrogen hubs in the 2021 Infrastructure Investment and Jobs Act and is pushing for the right energy incentives. “We need to unleash American energy,” Capito affirmed.
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