How Trump’s Tax Bill Could Impact Green Energy in a Staunchly Supportive Georgia Town

CARTERSVILLE, Ga. (AP) — Recently, two South Korean companies announced a massive investment to build solar panel and electric battery factories in northwest Georgia. This move aims to revitalize the local economy and create thousands of jobs. Cartersville, a town that once relied on cotton mills and breweries, is now shifting toward a new manufacturing focus.

However, as Congress debates a tax cut bill, some Republicans propose cutting subsidies that support projects like these. This could jeopardize Cartersville’s economic growth, despite the area’s strong backing for former President Donald Trump, who received 75% of the vote in Bartow County.

Local officials, like Steve Taylor, the elected commissioner, expressed concerns about the potential cuts. Taylor stated that the factories have brought a new wave of industry to the community.

“Those companies came and it gave us a completely different type of industry for our community,” he said.

For Georgia, the stakes are particularly high. The state has seen an influx of clean energy projects, which surged since President Biden signed the Inflation Reduction Act. According to E2, an environmental business group, Georgia leads the nation with 33 new clean energy projects, pledging more than 25,000 jobs and investments exceeding $20 billion.

In Cartersville, the new $5 billion Hyundai battery factory and a separate $2.3 billion solar panel plant from Qcells promise steady jobs with an average salary of $53,000. The federal tax credits tied to these projects are crucial. For instance, buyers of Qcells panels receive a 40% tax credit that may vanish if the subsidy cuts pass.

Scott Moskowitz from Qcells argues that eliminating these supports undermines the goal of boosting U.S. manufacturing, pushing consumers back to international producers, particularly from China.

Concerns about the cuts are echoed by local Republicans. Sixteen GOP state lawmakers recently urged Congress to maintain tax breaks for solar projects, warning that weakening them could halt Georgia’s manufacturing recovery. Cartersville Mayor Matt Santini noted the unfairness of pulling federal support after companies made significant investments based on those promises.

Interestingly, many clean energy projects are situated in Republican-held districts, with a study revealing that 77% of planned spending is in these areas. However, some leaders have remained silent on the issue. U.S. Rep. Barry Loudermilk suggested that cutting subsidies may lead companies like Qcells to operate more independently of government support, asserting that reducing dependence on government is essential.

On the other hand, Republican Governor Brian Kemp has chosen not to engage in the subsidy debate directly, even while promoting Georgia as a leader in green energy investments. He has previously criticized Biden’s incentives as detrimental to certain industries. Meanwhile, local leaders stress the importance of keeping these projects thriving, regardless of political affiliations.

It’s clear that from Bartow County’s leadership to wider Georgia politics, many are worried about the future. As U.S. Senator Jon Ossoff put it, voting for the cuts could mean risking years of hard work in building up Georgia’s economy.

The outcome of these legislative decisions will be crucial for Georgia’s transition to a cleaner energy economy and the jobs associated with it. As interest in electric vehicles grows, companies like Hyundai, while facing demand challenges, are adapting to market needs by offering a mix of powertrains, reinforcing the importance of stable policy support.

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