A Looming Threat to North Carolina's Success
North Carolina thrives as a hub of opportunity, drawing businesses with its skilled workforce and competitive costs. Yet Governor Josh Stein's push to preserve the Inflation Reduction Act's clean energy tax credits, outlined in a letter to Senate leaders, risks unraveling this progress. These credits, part of a 2022 law, promise jobs but deliver higher bills and market distortions. For a state built on manufacturing strength, clinging to this flawed policy is a dangerous misstep.
Stein claims the IRA has driven $24 billion in clean energy investments, creating thousands of jobs. He warns that H.R. 1's proposed repeal would derail this momentum. But the numbers tell a different story. Studies project these subsidies will raise household electricity rates by 5-7 percent by 2030, adding $75-$150 to annual family budgets. In a state where low-income households already dedicate 17 percent of their income to utilities, this increase hits hard.
The governor presents the credits as an economic lifeline, yet they burden everyday North Carolinians with costs that outweigh the benefits. A conservative vision, grounded in free markets and fiscal discipline, offers a better way. It prioritizes affordable energy and genuine job growth without relying on federal handouts that skew competition and inflate prices.
The stakes are high. North Carolina's manufacturing boom, fueled by its business-friendly climate, faces jeopardy if utility costs spiral. The IRA's trillion-dollar price tag over a decade funnels benefits to select corporations while working families foot the bill. A smarter approach would free the state from this costly experiment and protect its economic edge.
Why should North Carolinians pay more for a policy that distorts markets? The state's prosperity depends on rejecting these credits and embracing policies that empower businesses and families alike. This secures a future where opportunity drives growth, freeing the state from reliance on federal subsidies.
The Real Cost of Subsidized Energy
Stein touts the IRA's role in attracting clean energy investments, but the economic fallout is undeniable. Research indicates that repealing these credits would save $227-$315 billion in federal spending and prevent a 13 percent rise in household electricity rates, sparing families $200 annually. For businesses, the savings are even greater, with commercial rates potentially climbing 20 percent without action.
The governor's emphasis on clean energy jobs ignores how these subsidies skew the energy market. In 2024, solar made up 61 percent of new U.S. capacity additions, propelled by IRA incentives. This rapid shift, driven by federal dollars, threatens grid stability, as it outpaces genuine consumer demand. Texas's 2021 blackouts and California's strained reserves highlight the risks of over-relying on renewables without reliable backup. North Carolina's energy security demands a balanced approach.
The IRA's domestic-content rules, intended to boost U.S. manufacturing, instead create red tape that stalls projects and inflates costs. A 2025 survey revealed 71 percent of CEOs aim to reshape supply chains, but bureaucratic hurdles could derail investments if domestic suppliers lag. A conservative alternative, broad tax relief and streamlined regulations, would spur industry growth without penalizing consumers, as proven by the 2017 tax cuts that ignited a manufacturing surge.
Stein argues that repealing the credits would weaken national security by slowing supply chain reshoring. But the IRA's dependence on Chinese-dominated mineral markets for batteries and solar components undermines that goal. Targeted tariffs and market-driven policies would better secure supply chains while keeping energy affordable. Why subsidize foreign suppliers at the expense of North Carolina families?
The data speaks for itself. The IRA's credits raise costs, distort markets, and jeopardize reliability. By redirecting savings to broad tax cuts, as GOP budget drafters propose, North Carolina can foster growth without burdening consumers. This approach ensures clean energy competes fairly, without artificial props.
A Stronger Path for North Carolina
North Carolina's economic resilience stems from its ability to innovate, a strength that has proven more reliable than federal subsidies. Since 2007, the state has attracted $31.3 billion in clean energy investments, well before the IRA, thanks to its competitive costs and skilled labor. Repealing the credits would build on this foundation by freeing businesses from distorted incentives and letting markets drive progress.
A broader vision offers more promise. The Coalition for a Prosperous America estimates that a 50 percent tax credit for all domestic manufacturing could generate 11.2 million jobs nationwide and lift GDP by 6.3 percent. This policy would empower North Carolina's factories without raising utility bills or favoring one sector. The 2017 tax reforms, with immediate equipment expensing, showed how such measures spark widespread growth.
Stein's plan locks North Carolina into a trillion-dollar federal program that fuels deficits and inflation. A conservative strategy, centered on tax relief, deregulation, and energy diversity, delivers stability and opportunity. It trusts North Carolinians to thrive without Washington's heavy hand. Why choose a policy that raises costs when a better one lowers them?
Safeguarding Our State's Future
The fight over the IRA's tax credits is about more than energy, it is about who bears the cost of federal priorities. North Carolina families, already stretched by rising expenses, need policies that prioritize their wallets. Repealing these credits would cause a $200 annual hit to household budgets and preserve the state's manufacturing competitiveness.
Stein's defense of the IRA overlooks the long-term price of subsidy-driven growth. It is a fleeting fix that burdens consumers while claiming to protect jobs. North Carolina can set a national example by embracing free markets, affordable energy, and robust industry, a vision that resonates with the state's hardworking ethos.
The choice is clear. By rejecting the IRA's costly credits, North Carolina can shield its families, secure its economic future, and show that prosperity thrives without federal strings. It is time to act boldly for the people of this state, not for Washington's agenda.