May 2025
Companies
Influence
Climate Policy
*Editors note: The House Budget Bill (also referred to by some as ‘The One, Big, Beautiful Bill’) incorporated the proposals discussed below and the package passed through the House on May 22nd and is now being considered in the Senate. Now is the time to reach out to your Senators and urge them to protect clean energy programs and provisions. Urge business leaders and others in your network to do the same. Thank you for your advocacy at this critical moment.
Welcome back to Connect the Dots, a newsletter from ClimateVoice focused on exploring the connection between companies, political influence, and U.S. climate policy. So far we’ve examined why policy is so important, the ways that companies engage (or, more often, sit on the sidelines), the impact of trade associations in obstructing action, and how sustainability professionals can be a powerful voice for climate policy.
In this issue, we’ll be exploring the House Ways and Means Committee’s proposed tax reform package and its impact on clean energy initiatives, along with the Energy and Commerce Committee’s proposed rules. The proposals from these two groups play a critical role in determining the outcomes of the U.S.’ climate policies. The current House Budget Bill (also referred to by some as ‘The One, Big, Beautiful Bill’ or ‘the House Reconciliation Bill’) incorporates these proposals, and the House Budget Committee is currently advancing the bill, which will then move to the House Rules Committee next.
We will break down why the clean energy tax credits on the chopping block are important and how the proposed changes will impact jobs, energy costs, the environment, public health, and the economy. Last but not least, we’ll underscore how important it is for companies and employees to be speaking up in support of climate and clean energy rules, especially right now in the face of proposed cuts and rollbacks.
Action Items
Get up to speed on the U.S. budget reconciliation process and how it will impact climate policy, and start pressing your company leaders to weigh in. Reading and sharing this newsletter is a great place to start!
Urge your company to use their voice to protect clean energy tax credits and defend the clean energy investments included in the Inflation Reduction Act (IRA).
Check to see how much money your district has received from the IRA.
The Big Picture
Current Proposals Threaten Climate Policy Progress to Date
In 2022, Congress passed historic climate legislation called the Inflation Reduction Act (IRA). Many of you who have been following ClimateVoice know that we urged companies to go all in with their support of the original bill (the Build Back Better Act), which evolved into the Inflation Reduction Act. We tracked how 21 companies were obstructing, cautious, or leading in their policy advocacy for BBB and then the IRA. We praised those companies who spoke up to endorse this historic legislation and held those that didn’t back this policy accountable for their inaction. Constellation, Microsoft, Salesforce, and Walmart were among the companies that led in their support for the IRA’s $369 billion dollar climate and energy investment to power the clean energy transition.
The IRA (PDF) is not only a historic investment in clean energy – it also presents a critical step in reducing greenhouse gas emissions. The benefits of this bill include lowering energy costs, providing tax credits for clean energy investments, and enhancing grid resilience, while also creating jobs.
The Ways and Means Committee has proposed a tax reform package that threatens clean energy tax credits, clean vehicle standards, home energy efficiency, and the potential for clean manufacturing. Furthermore, the Energy and Commerce Committee has proposed billions of dollars in cuts that will negatively impact climate and clean energy programs including repeals of sections of the Clean Air Act, and threats to critical programs such as the Greenhouse Gas Reduction Fund, vehicle efficiency and emissions standards, and climate pollution reduction grants. You can read the proposed bill text from the Energy and Commerce Committee here.
The slew of proposed changes to the clean energy tax credits are incredibly restrictive to clean energy production, investment and manufacturing – serving as an effective repeal. These proposals are currently moving forward as part of the current House Budget Bill amidst negotiations, and have the potential to reverse the progress made by the IRA. Companies and employees should be speaking up in this moment to defend clean energy and the progress to date.
The Nitty Gritty
We’ll use this section to wade deeper into top news in the climate world.
What’s at Risk?
With the Ways and Means Committee proposal, many of the proposed cuts to tax credits are planned for the end of this year, with others phased out over time. Tax credits that would be affected include the Clean Energy Tax Credits (45Y and 48E), Electric Vehicle Credits (45W, 30D, 30C, 25E), Advanced Manufacturing Credits (45X), Home Energy Efficiency and Electrification Credits (25C), New Energy Efficient Home Credits (45L), and Residential Solar and other home energy systems credits (25D).
Concerns with these proposed cuts include the potential hampering of the clean energy market, general threats to the clean energy sector, and negative impacts to job creation, investments and the clean energy transition. Of note: these cuts risk axing many new projects and threaten the funding of projects that are already underway. Consumers would no longer be able to receive a tax credit for new qualifying electric vehicles or for purchasing a used electric vehicle, for example – and critics worry that proposed ‘Foreign Entity of Concern’ requirements will stifle eligibility for tax credits for those working with companies overseas, which could harm U.S. manufacturing reliant on international supply chains.
With the Energy and Commerce Committee proposal, a possible $6.5 billion in funding could be cut – severely impacting clean energy and climate programs, with certain provisions risking the repeal of sections of the Clean Air Act, for example. A number of programs are at risk, including, but not limited to the Greenhouse Gas Reduction Fund, environmental justice block grants, vehicle efficiency and emissions standards, and climate pollution reduction grants. The bill would also allow natural gas pipeline projects to pay a fee (of $10 million) to bypass the normal permitting process. Furthermore, the bill proposes that the Department of Energy could allow proposed liquefied natural gas (LNG) export facilities as being “in the public interest” if the applicant pays $1 million dollars.
Other IRA programs that are affected by the Energy and Commerce proposal include air pollution monitoring programs for schools, the fenceline pollution monitoring program at the Environmental Protection Agency (EPA), the American Innovation Manufacturing Act (aims to phase down hydrofluorocarbons), and Greenhouse Gas Corporate Reporting at the EPA (supports transparency and standardization of corporate climate action commitments and greenhouse gas emissions reduction planning).
The potential negative impacts of these policy moves are vast, including increased pollution and associated health risks, increased costs, reduced efficiency, fewer resources available to support local climate mitigation projects, and a proliferation of gas pipelines, to name a few.
For a Deeper Dive
Why Employees and Companies Need to Weigh In – Now
The good news: It’s not too late to save clean energy. That’s where you – and all of us working to advocate for climate policy come in. Your voice is needed to speak up for clean energy, affordability, and climate action, especially now and during the ongoing decision making process in the days and weeks ahead with further negotiations forthcoming. While these proposals point to a potential repeal of many aspects of the IRA, a lot can and hopefully will change between now and when a final budget is presented.
Right now is the time to get up to speed, share information on these critical decision-making moments, and raise with company leadership, peers, and your Green Team or Sustainability focused Employee Resource Groups.
Remember: Nearly 70% of the world’s 500 largest companies have a public climate commitment, more than ever before. While many U.S. companies are being less vocal when it comes to climate commitments thus far in 2025, 84% of companies are keeping or accelerating their climate targets. It is essential to hold the line on climate action and clean energy deployment. Companies should continue to hold fast and firm to their commitments and employees should urge company leaders to support policies such as those discussed here that align with current commitments.
The business voice matters in these current policy fights – and aggregating business influence to lobby for policies that protect business, communities, jobs, affordability, and the environment is key. We need leaders and employees to leverage their influence now – using all means possible. Whether through public statements, private meetings with legislators and decision-makers, or joining other companies or industry groups to call for protection of climate-related policies, find ways to use your influence in this important moment.
As we have said before: There has never been a more important time to speak up. The decisions made today will have a profound and lasting impact on our environment, our society, and our future. Let’s get to work advocating for the protection of the progress made to date.
Coming soon...
Stay tuned for our next issue where we’ll continue digging into corporate climate policy advocacy and how employees can raise the bar on what corporate climate leadership looks like.
Have a specific question about Corporate Political Responsibility that you’d like us to address? Shoot your questions to us with subject line "Connect the Dots." Have a specific question about Corporate Political Responsibility that you’d like us to address? Submit your questions to us with subject line "Connect the Dots."
Have a specific question about Corporate Political Responsibility that you’d like us to address? Shoot your questions to us with subject line "Connect the Dots." Have a specific question about Corporate Political Responsibility that you’d like us to address? Submit your questions to us with subject line "Connect the Dots."