Innovation keeps energy affordable, reliable and clean. United States’ public investment in R&D has generated returns to the U.S. economy of 140 to 210 percent. In the energy sector, innovations in nuclear energy, carbon capture and sequestration, and geothermal energy are poised to play a critical role in meeting demand growth, bolstering reliability, and reducing consumer energy costs.

Innovation bolsters U.S. energy dominance while reducing emissions. American innovations in horizontal drilling and hydraulic fracturing enabled the U.S. to shift from relying on imports for 46% of its oil and natural gas needs in 2000 to exporting the equivalent of 10% of its demand today. These technologies have also drastically reduced CO2 emissions. Today, similar technological breakthroughs are spilling over into the geothermal energy and geologic hydrogen industries, catalyzing new investments in federal innovation to position America as the global leader in subsurface energy production.

Investing in innovation is key to winning the global AI race. As our adversaries, like China, continue to invest heavily in R&D, the U.S. must increase its R&D support for critical clean energy technologies and continue catalyzing billions in private sector investment to prevail over China and maintain its leadership in critical emerging technologies like AI. Favorable R&D tax treatment, like immediate deductibility for R&D expenses as included in H.R. 1 One Big Beautiful Bill Act and the Senate Finance reconciliation bill, is another powerful lever to encourage more private sector investment across the economy.