Environmental groups in Virginia are worried some clean energy projects may be at risk of losing important tax credits if federal energy credits remain on the chopping block as part of President Donald Trump’s massive tax cut bill.

The bill is “a disaster for Hampton Roads” and could be a “serious blow” to jobs and economic development, said Blair St. Ledger-Olson, director of advocacy and campaigns for the Virginia League of Conservation Voters.

“Rolling these tax credits back harms the region’s opportunity to be an anchor in the offshore wind supply chain, revitalize our port infrastructure and be a national leader in the clean energy transition, not to mention threatening the environmental progress we’ve fought so hard to achieve,” St. Ledger-Olson said.

The House passed the One Big Beautiful Bill Act last month, and the Senate is now poised to take up the proposal and make its own suggestions. The House version repeals or gives earlier deadlines to clean energy tax credits passed in the 2022 Inflation Reduction Act during former President Joe Biden’s term. Biden’s climate law has been considered important for the clean energy transition, but the House bill effectively ends much of the law’s incentives for renewable energy such as wind and solar power.

Dominion Energy’s Coastal Virginia Offshore Wind project, under construction off the coast of Virginia Beach, is a 2.6-gigawatt wind farm eligible for some of the IRA’s tax credits like the Production Tax Credit or Investment Tax Credit. The IRA provides a 30% tax credit for offshore wind projects that began construction before 2026.

The cost of the project has already risen from $9.8 billion to $10.7 billion and tariffs could add another $500 million to the cost. If the tax credits are restored, spokesperson Jeremy Slayton said they will “substantially lower costs” for customers. The project did not receive any grant funding through the IRA, Slayton said.

For solar projects, it’s currently unclear which specific projects could be at risk. Robin Dutta, executive director of the Chesapeake Solar and Storage Association, said the only solar and storage projects that could be eligible for the Investment Tax Credit are projects that have already begun construction, or projects that begin construction within 60 days of the bill being signed into law. In addition to those parameters, projects must be completed by 2028.

It also prevents residential solar projects financed through leases, which Dutta said are popular in Virginia, from getting the Investment Tax Credit at all.

“In general, any project that is awaiting zoning approval at a county is at risk. Larger projects that are waiting for their utility interconnection studies and grid upgrades to be completed are at risk of not completing construction by this deadline. No residential projects would qualify for a tax credit after 2025, if the current language becomes law. So, overall, the risk is to projects in the early stages of development.”

Dutta said jobs at risk right now are business development and sales jobs, but once the existing pipeline of projects is built, the installers wouldn’t have as many systems to build as they currently do.

One project that business executives say will not be affected by the tax credits reductions is the undersea cable manufacturing facility being built in Chesapeake by LS Greenlink USA.

The company touts more than $99 million in federal tax credits to help reduce costs. But Patrick Shim, managing director for LS Cable and System, told The Virginian-Pilot that the credits are safe from cuts under the new federal bill. LS Greenlink USA received 48C credits, which are not at risk. The 48C credits, known as the Qualifying Advanced Energy Project Credit, were created in 2009 and expanded under the Inflation Reduction Act.

The US Department of Energy reports that 48C is “a tax credit for investments in advanced energy projects … and is intended to build clean energy supply chains, drive investments and lower costs in energy communities.”

The Port of Virginia was awarded $380 million through the IRA to move from fossil fuels to electric equipment, with a goal of eliminating all emissions by 2040. The money is a grant rather than tax credits. The Port did not respond to a request for comment about whether it received any tax credits through IRA.

Democrats have sounded the alarm over the massive tax cut and immigration bill, which also drastically cuts funding for Medicaid and other social services programs. But some Republicans have also pushed back on some spending cuts included in the House proposal, including the energy tax credit cuts.

Rep. Jen Kiggans, Virginia Beach Republican, voted to approve the budget bill but noted the legislation “isn’t perfect.” Specifically, she pointed to the abrupt end to tax credits and financial support of renewable energy projects as an issue. She said she hopes further changes are made to protect these funding opportunities while the bill is in the Senate.

“These changes jeopardize local jobs, limit community access to affordable energy, and undercut innovation — especially in regions like ours, where energy resilience and national defense go hand in hand,” she said in a statement.

Senate Republicans Lisa Murkowski of Alaska, John Curtis of Utah, Thom Tillis of North Carolina and Jerry Moran of Kansas wrote to Senate leadership urging a reconsideration of cuts of tax credits.

“A wholesale repeal, or the termination of certain individual credits, would create uncertainty, jeopardizing capital allocation, long-term project planning, and job creation in the energy sector and across our broader economy,” the senators wrote in an April 10 letter.

Virginia’s Democratic Sens. Mark Warner and Tim Kaine said in a joint statement the House bill would jeopardize investment and raise energy costs for Virginians.

“Rolling back these investments would not only endanger these jobs but also hinder our progress toward a more sustainable and affordable energy future,” the statement reads. “We must protect the investments that are creating jobs and lowering costs for Virginians. The Republican plan puts our economic future at risk.”