Johnson's Threat to California Businesses & Cost-Cutting Green Investments

When Mike Johnson was elected Speaker of the House at the end of October, his first act was to threaten the investment opportunities for millions of American businesses that want to fight back against high and rising electricity costs.

His first bill would cut billions of climate based dollars from the Inflation Reduction Act, essentially targeting the 30% Solar Investment Tax Credit (ITC) and the additional 10% Energy Community Bonus Tax Credit.

The bill is not expected to pass but is to be taken as an indication of what lies ahead as we enter the election season.

In other words, today you can qualify for tax credits worth 40% of your total solar project cost, plus up to an additional 37% in other applicable tax deductions, making solar one of the best investment decisions available to businesses.

But the forecast for tomorrow looks less bright.

For California businesses already grappling with a 42% increase in electricity rates over the past three years, this legislative proposal adds to the uncertainty of future costs. Electricity rates in the state are among the highest in the nation, and with continued upward trends, businesses are in urgent need of stable, affordable energy solutions.

However, with the potential removal of these climate-based dollars, we’re reminding businesses to seriously consider solar while that money is on the table.

Our call to action is clear: assess the benefits of solar for your business now. We are building more solar projects than ever before in our 12-year history, and we’d like to make sure that we’re there for your business too when the time comes.