This op-ed originally appeared in MarketWatch on June 9, 2025. Read the original.
By: Charles Wald
A nation’s strength is built on the reliability of its infrastructure, the sovereignty of its supply chains and the resilience of its energy systems. At this moment, America faces a defining choice: continue investing in the energy backbone that powers its economy and national defense or abandon the essential tools needed to secure energy dominance in the face of rising global threats.
That decision hinges on congressional deliberation over tax credits for the investment and production of advanced energy of the future. And right now, Congress is considering a move that could throw this into question.
At stake are two key federal energy tax provisions — the investment and production tax credits — that help private companies invest in building the power plants and grid systems of tomorrow. These credits aren’t about ideology. They’re about building energy in America, with American workers, to serve the country’s economy and national defense.
And yet, despite their broad benefits, these tools are under threat.
In a rush to cut spending and a national political dialogue that has put partisanship over pragmatism, House lawmakers passed a bill that would gut or terminate almost all advanced energy tax credits. If the Senate does not take a stand and protect key credits, the result will be immediate — more than $60 billion in planned energy and manufacturing projects could be delayed or scrapped entirely, many in Republican districts across more than 15 states, including Georgia, Ohio, Iowa, North Carolina and Texas.
That’s more than 100,000 direct jobs on the line — jobs tied to battery plants, solar component factories, grid transmission hubs and more.
These credits have been maligned as supporting “clean energy.” They support energy production of all kinds — from advanced nuclear and geothermal to wind and solar, energy storage solutions and advanced grid components, including transformers, inverters and more. They reward performance, not fuel type. And they’re designed to make sure we can meet the growing demand for power from data centers, defense systems, factories, and homes with infrastructure that’s secure, modern and made in the U.S.
That’s not happening right now. In many cases, American manufacturers can’t compete with Chinese companies propped up by state subsidies and dominating the global supply of solar panels, transformers and the raw materials that power modern energy systems. China controls 90% of rare-earth processing, 80% of solar panel production, and over half of global battery components. Their goal is clear: corner the market and control the supply chains — not just for their own grid, but for anyone else willing to buy in. Without policy intervention, America’s power grid will be made in China.
These credits also include domestic content provisions to strengthen America against foreign adversaries. Whether it’s transformers, conductors, switchgear or mineral-processing plants, the infrastructure that powers American energy systems is expensive to build, and the U.S. needs to recover lost ground. Chinese companies — heavily subsidized and vertically integrated — are flooding global markets and undercutting U.S. companies on advanced energy technologies and raw materials, with cheap credit and labor. Tax credits help level the playing field and ensure these critical facilities are built on U.S. soil by American workers.
Without these incentives, essential projects will never break ground. The grid we need to serve America’s future — from missile defense to manufacturing — is already behind schedule. Gutting these credits now would set us back even further.
Let’s be clear: this isn’t about handouts, it’s about giving America’s industry the chance to succeed against foreign market manipulation. Right now, the U.S. doesn’t have enough electrons to meet surging domestic energy demand, and time is running out. These public-private investments pay off in jobs, reliability and national security. They help bring supply chains home. They reduce the need for emergency spending after a disaster or foreign supply disruption. And without them, American companies will be at a disadvantage, both at home and in overseas markets.
With dozens of members of Congress representing districts directly affected by these investments, this issue shouldn’t be controversial. These incentives are not giveaways, but are national-security investments that pay dividends in industrial resilience, workforce development and technological control. America’s adversaries won’t hold back on building the grid of the future; neither should the U.S.
Congressional lawmakers now have an opportunity to put the national interest above hyperpartisanship and must draw a hard line on protecting these essential credits. The stakes are too high to play politics with our power and advanced manufacturing future. Let’s build the infrastructure, the factories, and the future — on America’s terms.
General Charles “Chuck” Wald (Ret.) served as deputy commander of the U.S. European Central Command. He is a member of SAFE’s Energy Security Leadership Council.
