(Bloomberg) -- US Treasury Secretary Janet Yellen made the case to preserve one of the Biden administration’s key legislative achievements on a Thursday visit to the political battleground state of North Carolina, hailing an increase in investments in clean energy and manufacturing.
Speaking in Raleigh, Yellen warned that rolling back tax credits for renewable energy would be “a historic mistake” that would raise costs for families at a time when more action to lower prices is needed.
“It could jeopardize the significant investments in manufacturing we’re seeing here and across the country, along with the jobs that come with them, many of which don’t require a college degree,” Yellen said, according to prepared remarks released by the Treasury.
The Inflation Reduction Act — which cleared Congress in 2022 without any Republican votes — is “fueling massive private sector investments in manufacturing and clean energy,” Yellen said. Rolling back IRA credits “could give a leg-up to China and other countries that are also investing to compete in these critical industries.”
The Treasury chief touted the success of the Biden administration’s landmark bill, saying taxpayers across all 50 states are claiming these credits. In North Carolina, Yellen said data shows around 90,000 families took advantage of such credits with households claiming over $100 million in residential clean energy credits and over $60 million in energy efficiency credits.
GOP Arguments
Republicans have pledged to repeal the IRA incentives, which they argue have proved more costly than originally projected. Scott Bessent, a hedge fund manager and prominent fundraiser for Donald Trump, on Thursday described the IRA as “the doomsday machine” for fiscal deficits. Speaking on Bloomberg TV, he cited estimates it will blow a cumulative hole of $4.5 trillion into the federal budget over time.
Bessent, who’s seen as a potential pick for a top economic position if Trump wins in November, said he expects him to “put a halt” to the IRA if he takes office again next year.
--With assistance from Annmarie Hordern, Lisa Abramowicz and Jonathan Ferro.
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