Yellen warns North Carolina of job losses from tax incentive cuts

Treasury Secretary Janet Yellen addressed voters in North Carolina, emphasizing the potential job losses if Republicans weaken tax incentives from the Biden administration. During her speech at a community college in Raleigh, she highlighted that North Carolina has benefited significantly from the 2022 Inflation Reduction Act, which promotes investments in manufacturing and clean energy. Yellen noted that over 90,000 households in the state claimed substantial credits for residential clean energy and energy efficiency, totaling over $160 million. Yellen warned that rolling back these incentives could increase costs for families and jeopardize ongoing investments in manufacturing, which often do not require a college degree. She expressed concern that such actions could also benefit foreign competitors, particularly China, which is investing heavily in similar industries. The implications of these tax incentives are critical, especially as North Carolina is a key battleground state in the upcoming elections. Some Republicans have urged their leaders to reconsider repealing these energy tax incentives, arguing that doing so would undermine existing private investments and halt ongoing developments. A letter from a group of 18 House Republicans cautioned against a full repeal, suggesting it would lead to wasted taxpayer dollars without tangible returns. Conversely, some Republican lawmakers criticized the incentives as 'green handouts' to corporate interests. The debate continues as the GOP grapples with the implications of the Inflation Reduction Act, which they argue is wasteful and disproportionately benefits foreign nations like China.