GOP budget bill threatens Nevada's affordable clean energy future

Heavy cuts to Inflation Reduction Act (IRA) tax credits in the House budget bill pose a substantial threat to the clean energy boom across the country—but Nevada in particular may stand to lose the most. The Silver State, which has claimed the most potential IRA funding of any state, could lose up to 21,703 clean energy jobs and $15.5 billion in clean energy investments if the tax credits are axed, according to Climate Power. 

At a time when Nevada’s unemployment rate remains the highest in the U.S., extreme heat is straining its power grid, and electricity prices are soaring, Nevada’s clean energy transition remains vital for its economic prosperity and energy future. Clean energy advocates, including Nevada's two Democratic senators, warn that IRA rollbacks could reverse years of progress, take jobs out of the state, and raise the cost of living for Nevadans.

“From solar production to lithium mining, Nevada is at the forefront of the clean energy revolution,” Senator Catherine Cortez Masto said in a statement to EnergySage. “Dismantling the IRA tax credits will destroy thousands of good-paying, union jobs, raise energy costs for working families, and shrink the Silver State’s GDP, all to fund handouts to Trump’s billionaire buddies. I will do everything I can to fight the Republicans’ job-killing agenda.”

Senator Jacky Rosen echoed those sentiments in a May 16 Facebook post, writing, “If Trump and Congressional Republicans get their way and repeal clean energy tax credits, NV will lose thousands of good-paying jobs and families will see higher energy bills. Clean energy investments are good for our state’s economy, and I’ll keep fighting to protect them.”

Nevada is a national leader in clean energy, ranking second in geothermal electricity generation and first in solar generation per capita, according to the Nevada Clean Energy Fund. Currently, about 30% of Nevada’s electricity comes from renewable energy sources. The state has set ambitious goals to generate 50% of its electricity from renewable resources by 2030 and achieve 100% carbon-free resources by 2050.

Nevada also possesses abundant, yet largely undeveloped solar, geothermal, wind, and energy efficiency resources. The state averages 270 days of sunshine per year, leading the nation in solar power potential. Additionally, the Great Basin’s geology, marked by highly fractured, permeable rock along fault zones, makes it one of the world’s most promising regions for geothermal energy. In fact, new estimates from the United States Geological Survey (USGS) suggest that the region could supply as much as 10% of U.S. electricity demand from geothermal sources alone.

On top of that, Nevada holds roughly 85% of the nation's known lithium deposits, an essential mineral for renewable energy storage and EV batteries. While it’s currently home to the only operating lithium mine in the U.S., industry expansion is already underway in the state—lithium mines at Thacker Pass and Rhyolite Ridge are set to begin construction this year.

Since the IRA was passed in 2022, Nevada has attracted more than $28.3 billion in low-carbon energy investments—and $15.4 billion of that is still unspent, according to Clean Investment Monitor data. Those unspent funds, which represent more than 20 clean energy projects that are still in their planning stages, could all be lost if the GOP’s sweeping tax-cut bill is enacted.

As of now, the Republican budget proposal would eliminate or accelerate the phase out of a number of key tax credits that are incentivizing onshore production of clean energy technologies, from domestic solar content to American-made energy storage.

Clean Electricity Production and Investment Credits (PTC and ITC) such as the manufacturing tax credit (45X) and advanced energy project credit (48C), as well as residential credits (25C and 25D) and large-scale and commercial credits (48E and 45Y), are vital for the growth of Nevada’s clean energy sector. However, the bill’s current provisions would make it exceptionally challenging for many already announced and in progress projects to qualify for the credits before they expire.

It would also impose new, and in many cases, unworkable restrictions on financing, transferability, and projects with ties to “foreign entities of concern” (FEOCs) like China, which controls much of the global clean energy supply chain. 

If passed, the legislation would require commercial clean energy projects to start construction within 60 days of the bill’s passage—or be up and running within two years—to secure the tax credits before the new termination dates. It would also determine eligibility for the credits based on projects’ placed-in-service dates rather than when they began construction, eliminating the “safe harbor” provision that projects with long development timelines could previously rely on. In addition, any company using Chinese-sourced components or raw materials for building or operating facilities would be denied eligibility for the credits. 

Together, these deep tax cuts would be a massive blow to Nevada’s clean energy economy. Companies attempting to scale up domestic operations would be forced into near-impossible construction timelines, while the lack of federal incentives would lower consumer demand for solar and other green technologies—further stifling manufacturing growth in the state and putting Nevada’s renewable energy transition goals in jeopardy.  

As of 2025, Nevada’s clean energy sector employs 54,998 workers, which is 19% above the national average. Right now, the National Renewable Energy Laboratory projects that Nevada’s clean energy job market will more than double between 2020 and 2030. But a repeal of IRA tax credits could cost Nevada its existing 21,703 jobs—and kill the tens of thousands of jobs that would come with that clean energy sector growth over the next decade.

Beyond job creation, the shift to clean energy helps save Nevada residents money. A recent Columbia Business School study, “The Economic Impacts of Clean Power,” estimates that transitioning to a renewable energy grid would lower U.S. electricity prices by as much as 20% to 80% by 2040, based on regional access to renewable energy. 

But if IRA credits are cut, industry analysts project a 7% increase in residential electricity costs—translating to about $143 more per year for the average American household, according to EnergySage data. Nevada households specifically could see an increase in electricity costs of $289 by 2030, which would be the second-highest increase in the country.

The savings from clean energy in Nevada are already undeniable: In 2023 alone, residential tax credits for solar panels, EVs, heat pumps, and other energy-efficient upgrades helped save more than 41,000 Nevada households approximately $151 million on clean energy investments.

The House budget bill is now in the hands of the Senate, with Republican leaders hoping to pass the bill by July 4 to send to Trump’s desk for his signature. If GOP senators leave the deep cuts to clean energy tax credits intact, Nevada could face losing billions of dollars worth of investments, thousands of jobs, and its affordable energy future, ultimately hurting the state’s local businesses, economy, and families the most.

If you want to make your voice heard, fill out this form to tell your elected officials why they must protect IRA tax incentives like the federal solar tax credit that help Nevadans get jobs, invest in clean energy, save on their electric bills, and protect the environment.