Nearly all of the clean energy tax credits from the Inflation Reduction Act are on the chopping block as Republicans advance legislation to gut the climate provisions. House Republicans passed the One Big Beautiful Bill Act (OBBBA), slashing most of the clean energy incentives, while Senate Republicans squeezed through their own version with a 51-50 vote—VP JD Vance breaking the tie. Talk about a close one.
But not all Republicans are on board. Rep. Brian Fitzpatrick stood alone among House Republicans in opposing OBBBA over its clean energy cuts. He’s now scrambling to undo the damage with a new bill that aims to reinstate solar and wind incentives to achieve energy independence. Seems like the GOP isn’t exactly unified on this one.
The cuts are brutal. Commercial clean electricity credits? Shortened. Wind manufacturing tax credits? Gone five years early. Electric vehicle incentives? Practically dead. Republicans did keep some goodies though—nuclear, geothermal, and biofuels credits survived the chopping block. How convenient.
Republican hatchet job on green energy leaves only their favorites standing—nuclear, geothermal, and biofuels somehow escaped unscathed.
These changes aren’t just numbers on paper. Experts predict electricity prices will jump 15-22% in certain states. American households could pay an extra $6 billion annually in energy costs over the next five years. And around 700,000 jobs could vanish. Not exactly the “winning” some politicians promised.
The environmental toll is just as bad. We’re looking at over 530 million metric tons of additional climate pollution—equivalent to adding 116 million cars to the road. The methane pollution fee on oil and gas gets kicked down the road for a decade. Great.
Behind closed doors, dozens of House Republicans actually support keeping some clean energy credits. Senators Collins, Tillis, and Rand Paul voted against the Senate bill partly due to the clean energy cuts.
The irony? Independent research shows these credits lower costs for everyone, not just those who claim them. But with a president who calls green tax credits a “SCAM” and renewables “JUNK,” facts seem optional in this energy policy showdown.
The clean energy industry has driven unprecedented factory growth, with 751 new manufacturing projects announced since the credits were extended in 2022. This flies in the face of market projections showing renewables are set to provide one-third of electricity globally by 2025, outpacing coal generation.
References
- https://www.eenews.net/articles/republican-working-on-new-clean-energy-tax-push/
- https://cleanenergy.org/news/the-house-gops-energy-policy-would-increase-your-bills-and-raise-taxes/
- https://citizensclimatelobby.org/blog/policy/senate-passes-bill-cutting-clean-energy-tax-credits-but-several-republican-senators-help-avoid-the-worst-outcomes/
- https://www.edf.org/media/house-passed-tax-plan-will-raise-costs-surrender-jobs-increase-pollution
- https://www.majorityleader.gov/news/documentsingle.aspx?DocumentID=5830
