Key provisions poised to accelerate Wyoming’s energy leadership

Wyoming is a national leader in energy production and innovation. There is an energy transformation underway, and demand is exploding. With Wyoming’s energy workforce, infrastructure and manufacturing bona fides, few states are as poised to seize this opportunity. 

In order to achieve these all-of-the-above ambitions, there is a key role for federal incentives to get industries like critical minerals, energy production and carbon management off the ground. Leaders in Washington, D.C. are instrumental in determining the likelihood of success. 

Financial certainty enables businesses to invest in new projects and facilities, expand operations, and hire and train workers. Tax credits are not about picking winners and losers — they are about building economic momentum in Wyoming and making sure our communities are not left behind in the changing energy landscape.

Data from Utah State University and Atlas Public Policy estimate that, catalyzed by tax credits, Wyoming has already seen more than $894 million committed to manufacturing and mining. Further, the Rhodium Group and MIT show that 1,050 operational and construction jobs have been created in Wyoming as a result of energy and manufacturing investments since the second half of 2022.

Industry leaders see the writing on the wall. Rusty Bell, CEO of Energy Capital Economic Development in Campbell County, said in his community, “there’s so much happening in energy leadership and many of these energy credits play a key role in getting those projects off the ground.”

In conversations last week with Wyoming business leaders, the Jackson Hole Center for Global Affairs asked which tax incentives are most important to their operations. Those that stood out were 45Q (carbon capture), 45Z (clean fuels), 45X (advanced manufacturing) and the Energy Community Tax Credit. 45Y (Clean Electricity Production) and 48E (Clean Electricity Investment) were also noted, in part because they qualify for the Energy Community Tax Credit Bonus, a 10% adder for projects built in energy communities like those in Wyoming. 

On Tuesday, the Senate passed its version of the One Big Beautiful Bill Act and sent it back to the House for the final vote before it goes to the president’s desk. The Senate-passed version restores the original inflation indexing for 45Q and retains 45X (with a phase-out beginning in 2031 for critical minerals and terminated eligibility for wind components after 2027). It modifies Sections 45Y and 48E by eliminating wind and solar projects’ eligibility after 2027 and introducing severe foreign entity of concern (FEOC) restrictions.

The current version of the bill means that the Energy Community Tax Credit, which can be applied to 45Y and 48E but not other key credits, now sits on the chopping block. Rapid phase-outs and reduced credit values threaten developers’ ability to take advantage of this bonus over the long term.

As a leading energy community, Wyoming stands to benefit perhaps more than any other state from the Energy Community Tax Credit. Rather than phasing out the credit, expanding it to align with the existing provisions that look to benefit Wyoming’s energy industries would double down on the energy leadership boom that is already underway. 

Robby Rockey, president and co-CEO of Frontier Infrastructure, supports expanding the 10% adder to drive investment in coal communities.

“It’s a bridge that connects Wyoming’s energy heritage with its innovation future,” Rockey explains. “If it were combined with credits like 45Q, 45X, and 45Z, the ECTC would have a multiplier effect that wouldn’t just attract capital, but also ensure that investment flows directly into the communities that have powered America for generations. With the ECTC, we are guaranteeing that Wyoming’s energy communities are the foundation for our next chapter in critical minerals, carbon management, and advanced manufacturing.”

These key tax provisions strengthen businesses’ ability to invest in infrastructure and supply chain capacity. They are crucial to the energy momentum already underway in Wyoming.

Now is the moment to double down on Wyoming’s energy advantage. By preserving these incentives and expanding the energy community bonus, Congress can secure a future where Wyoming leads the nation — not just in energy production, but in innovation, job creation and economic resilience.