May 27, 2025 - NEMA President and CEO Debra Phillips has issued the following statement in response to House passage of its reconciliation bill (H.R. 1): “The U.S. electroindustry is the backbone of our nation’s energy system, and electrical manufacturers have invested over $185 billion in domestic manufacturing since 2018.
NEMA strongly supports the pro-manufacturing provisions included in the House-passed tax legislation that will help manufacturers grow and invest in new American jobs. NEMA is grateful to Speaker Johnson, Chairman Smith, and all members of the House of Representatives for their hard work in passing this essential legislation. “At this pivotal moment, manufacturers need practical, growth-focused tools that will enable them to modernize our infrastructure, unleash our energy resources, create good jobs and bolster domestic manufacturing, including a permanent tax framework that provides certainty to invest and spur industry growth.
H.R. 1 is a great starting point, and we are encouraged as this process moves forward to the Senate. “The nation’s electrical manufacturers are hard at work building a reliable, secure and connected grid. An all-of-the-above tax code is necessary to support an all-of-the-above electricity grid that can meet rising demand and maintain affordability for American families.
“We are concerned that prematurely phasing out key energy tax credits will slow these essential infrastructure investments, stifle economic growth and job creation, and have a chilling effect on our shared objectives of growing domestic manufacturing, expanding energy dominance, and winning the AI race with China. “We remain focused on working with this Administration and Congress to preserve and extend key energy and manufacturing tax incentives that have helped increase domestic electrical manufacturing capacity and position the U.S. as a global leader in advanced manufacturing.
“NEMA strongly supports tax credits that have buoyed investment in U.S. manufacturing and asks the Senate to significantly lengthen the phaseout period of the Advanced Manufacturing Tax Credit (45X), Residential Clean Energy Credit (25D), Energy Efficient Home Improvement Tax Credit (25C), and Alternative Fuel Refueling Property Credit (30C). “In addition to extending the phaseouts, we urge the Senate to address the restrictive language on 'placed in service,' the elimination of transferability, and the definitions related to 'foreign entities of concern', which, as currently written, make the credits unusable to manufacturers and further risk weakening America’s energy and manufacturing growth.
We also support the inclusion of allowing critical grid infrastructure, such as distribution transformers, to qualify for the Advanced Manufacturing Tax Credit, as proposed in the CIRCUIT Act. “Simply put, phasing out or placing further restrictions on the bipartisan energy tax incentives endangers America’s global competitiveness and disincentivizes U.S. electrical manufacturers to innovate and grow.
“We also encourage the Senate to maintain pro-manufacturing policies in the House bill that will accelerate progress towards an electrified future and work to retain the energy provisions that will allow electrical manufacturers to help President Trump achieve his priorities for the economy and energy dominance.”
About NEMA
The National Electrical Manufacturers Association (NEMA) represents over 300 electrical equipment and medical imaging manufacturers that make safe, reliable, and efficient products and systems. Together, our members contribute 1% of U.S.
GDP and directly provide nearly 460,000 American jobs, contributing more than $250 billion to the U.S. economy.
