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Senate field hearing: tariffs and proposed tax-rollbacks cloud Massachusetts clean‑energy small businesses and workforce

May 09, 2025 | Small Business and Entrepreneurship: Senate Committee, Standing Committees - House & Senate, Congressional Hearings Compilation


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Senate field hearing: tariffs and proposed tax-rollbacks cloud Massachusetts clean‑energy small businesses and workforce
Senator Edward J. Markey, ranking member of the Senate Committee on Small Business and Entrepreneurship, convened a field hearing at Benjamin Franklin Cummings Institute of Technology to examine threats to the clean‑energy small‑business ecosystem, saying the sector "supports more than 200,000 jobs, an 80% increase, since 2010."

The hearing brought together industry and education leaders who said federal tariff actions and possible rollbacks of tax credits in the Inflation Reduction Act are creating immediate uncertainty that is slowing projects, chilling investment and forcing some employers to curb hiring. "These increased costs result in reduced competitiveness, slower innovation, and financial strain," said Josh Aviv, founder and CEO of Spark Charge.

Emily Reichert, chief executive officer of the Massachusetts Clean Energy Center (MassCEC), summarized state data showing the industry’s scale: "There are over 7,500 clean energy businesses in Massachusetts, and 58% of clean energy businesses in Massachusetts are small businesses with 10 or fewer workers." She told the committee the sector accounts for roughly 115,000 direct clean‑energy workers and a total of about 233,427 direct, indirect and induced jobs when supply‑chain and spending effects are included.

Panelists described several mechanisms by which federal policy is affecting local companies. Nick Darbeloff, president of the Solar Energy Business Association of New England (SEBANE), said tariffs and the possibility of reduced tax credits are increasing procurement costs and causing project financing to pause. "If a business knows that a component is going to cost more in the years ahead, it can plan for it. What makes planning much more challenging is a situation where it is difficult, if not impossible, to understand or even estimate what that component will cost," he said.

Speakers gave concrete examples: installers have raised prices by more than 20% in some cases, venture capital has moved to the sidelines and component costs have risen as much as 30%, panelists said. SEBANE, which represents about 80 member organizations, estimated roughly 55 member companies are solar firms and said virtually all are feeling negative effects from the recent policy changes. "Projects are being halted mid development," Darbeloff testified.

Beyond project economics, witnesses emphasized the labor demand the industry creates and the role of local training programs. Ayesha Francis, president of Benjamin Franklin Cummings Institute of Technology, described the school’s Center for Energy Efficiency and the Trades, which the senators helped fund, and cited outcomes: an 84% job‑placement rate for graduates and a median first‑year salary of about $60,000. Francis said the program expanded HVAC capacity to accommodate up to 125 students after $800,000 in community directed spending and that coordinated apprenticeships and early‑college programs help bring underrepresented learners into the workforce.

MassCEC said Massachusetts needs roughly 28,000 additional workers to meet 2030 climate goals and that 37% of clean‑energy employers reported difficulty hiring qualified workers. Reichert said that installation, maintenance and construction jobs are among the largest occupational groups in the state’s clean‑energy sector and that many of those positions pay wages above the statewide median. "Many clean energy occupations currently earn hourly wages that are higher than average hourly wages in Massachusetts," she said, citing examples such as electricians and HVAC technicians.

Panelists also linked tax incentives to project viability. Darbeloff and other witnesses described the Investment Tax Credit (ITC) and other credits as key to financing residential and commercial solar and charging infrastructure. Darbeloff said the ITC, which historically has been set at about 30% of system price, "drives down payback for solar systems in a way that is just fundamental for the investment community and for homeowners."

Witnesses warned of both near‑term and longer‑term consequences if federal supports are reduced. Aviv said Spark Charge has about 40 employees and operates in all 50 states, but has begun to slow hiring because fleets and investors are deferring decisions amid tariff uncertainty. "We've had to slightly start to pull back on hiring," Aviv told the committee. Darbeloff cautioned that some small installation firms could be forced to reduce staff or close if incentives and import rules change sharply.

Senator Markey said he will publish a committee report titled "Pulling the Plug: How Trump's Attacks on Clean Energy Could Turn Out the Lights for Small Business" and noted the hearing record will remain open for two weeks for additional comments. The hearing included no formal votes; committee staff opened the record and solicited written submissions for the record.

Taken together, testimony at the hearing illustrated a chain of impacts: federal tariff and tax‑policy uncertainty is increasing equipment costs and raising financing risk, which in turn is slowing project deployment and reducing hiring, even as Massachusetts technical colleges and training programs expand capacity to meet growing labor needs. The panel urged stable federal policy—continued IRA incentives, clear tariff rules and targeted small‑business supports—to avoid disrupting jobs and investment that panelists said are already growing in the Commonwealth.

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