The new federal tax law was introduced with promises of economic uplift and reduced financial strain for American workers. However, its benefits are not distributed evenly across the country. In some states. Particularly those with high poverty rates or reliance on federal aid workers may find themselves left out of the gains.
What the New Tax Law Changes
The “One Big Beautiful Bill Act” lowers corporate tax rates and removes or reduces several tax credits and federal aid programs. This includes eliminating incentives for clean energy jobs and limiting refundable tax credits that previously supported working families.
While the bill boosts business investments and cuts taxes for higher-income households, it offers fewer direct benefits to lower-wage earners, especially in states with weak labor protections.
Mississippi
Mississippi has one of the nation’s highest poverty rates, with 18.8% of residents living in poverty. Many residents work in agriculture, retail, or service jobs with low wages and few benefits. The new tax law does not expand earned income credits or provide new protections.
Additionally, cuts to Medicaid and the Supplemental Nutrition Assistance Program (SNAP) increase pressure on families who rely on them.
Louisiana
Louisiana is the second-poorest state with a 17.4% poverty rate and nearly 27% of children living in poverty. One-third of Eastern Louisiana’s population is enrolled in Medicaid. The law’s cuts to healthcare programs could increase medical costs for low-income households. It also does not address wage disparities or improve conditions in industries employing many Black and Hispanic workers.
Alabama
Alabama workers benefit little from corporate tax cuts. The state ranks sixth in renewable energy job growth at nearly 9.6% in 2023, yet the new law curtails such prospects. Many residents are in low-paying jobs without employer benefits or protections. The law fails to expand tax credits or financial supports, and cuts to safety nets further increase burdens.
Oregon
Oregon had over 53,000 clean energy jobs in 2022, placing it 22nd nationwide in employment in wind, solar, and energy storage. The state has developed jobs in solar, battery production, and transit electrification. The removal of renewable energy tax credits impacts these industries directly. Workers may see fewer openings and reduced hours, especially in rural areas.
Washington
Washington employed over 81,000 clean energy workers in 2022, among the top 15 states for total clean energy jobs. The new law weakens federal support for electric vehicle manufacturing and infrastructure. Workers in EV and related sectors face potential layoffs or stalling demand despite higher average incomes statewide.
Texas
Texas added 1,171 solar energy jobs in 2023, a growth of about 10%. The state has a large Hispanic population in low-wage jobs without strong protections. The law provides no new wage boosts or targeted credits for these workers. Cuts to Medicaid and SNAP will affect families who depend on them without offering any offsetting supports.
Georgia
Georgia supports around 75,000 clean energy jobs as of 2022. The workforce includes many Black workers facing wage gaps and limited benefits. The tax law does not fund workforce development or wage equity initiatives. In rural areas, reduced federal aid further strains already limited job opportunities.
California
California leads the nation with approximately 544,600 clean energy jobs in 2023, growing 4.1% despite overall state employment growing only 0.2%. Thousands of jobs in solar, wind, and EV sectors are now at risk under the new law due to the repeal of credits. Many Hispanic workers in service or farm work rely heavily on federal aid, which is now being reduced.
Maryland
Marland had around 80,025 clean energy workers in 2022, ranking 12th across states. Many Black residents work in education, healthcare, and local government roles that see no benefit from corporate tax breaks. At the same time, cuts to assistance programs disproportionately affect these households. The law offers no reforms for wage fairness or enhanced protections for these sectors.
Kentucky
Over 40% of Eastern Kentucky relies on Medicaid, one of the highest rates in the nation. The region also lost coal jobs with few replacements. The law’s cuts to federal support and lack of investment in new industries provide no relief. As a result, families may face increased economic hardship.
New Mexico
Nearly half of New Mexico’s population identifies as Hispanic. The clean energy sector in New Mexico saw growth of roughly 5.9%, but wage-paying opportunities remain limited. Many work in seasonal or public-sector jobs with few benefits. With clean energy credits fading and federal aid shrinking, few prospects remain for stable income growth.
