Republican support grows for keeping clean energy credits amid proposed Trump tax cuts

More House Republicans came forward this week to express their support for preserving Biden-era clean energy tax credits, which are at risk of being cut as the GOP budget plan moves through Congress.

In a letter earlier this week, 21 Republican lawmakers expressed their concern over a potential repeal of the Inflation Reduction Act (IRA) tax incentives, citing disruptions to clean energy production and investments in their districts.

Republican members of the House wrote that the tax credits are critical to Trump’s “energy dominance initiative,” and that a repeal could trigger an “energy crisis in our country” and “increase utility bills the very next day” for American families. They also argued that any changes to the current tax code would have disastrous effects on the current “project commitments” and infrastructure plans of energy developers nationwide.

The Republican representatives are rightfully worried over the elimination of the IRA incentives, as red districts have largely benefitted from the tax credits, according to E2’s Clean Economy Works: IRA Two-Year Analysis report. In fact, based on the report’s findings, “nearly 60% of the announced projects–representing 85% of the investments and 68% of the jobs–are in Republican congressional districts.” 

What’s more, data from the IRS and the U.S. Treasury Department shows that more than 3.4 million American families had claimed more than $8 billion in tax credits against their 2023 federal income taxes, revealing the lucrative benefits for homeowners who made energy efficiency upgrades.

In a statement to EnergySage, Rep. Juan Ciscomani, one of the 21 Republican signatories of the letter, said, "While much of the IRA was flawed and misguided to say the least, clean energy tax credits are catalyzing a boom in domestic energy production and driving industry back to America."

In his southern Arizona district, Congressman Ciscomani said the tax credits “are creating jobs and lowering energy costs,” and that repealing them “abruptly and preemptively would have detrimental effects on [his] constituents and create uncertainty for industries that have major projects already underway."

Another signee, Rep. Gabe Evans, told EnergySage: “In 10 years, Colorado's 8th Congressional District will need double to triple the amount of energy it uses today. Meeting that demand is critical for national security, our economy, and keeping costs low for consumers. Commonsense tax credits that preserve all of the above options for safe, reliable, and affordable energy are essential to American energy dominance.”

Rep. Dave Joyce echoed their statements: “I am thankful President Trump is leading the charge to ensure America can remain energy independent. Companies in my district have used energy tax credits to make substantial investments in domestic energy production and renewable energy sources. My colleagues and I want to protect these investments so that we can continue America’s energy independence and increase access to affordable energy for Ohioans.”

The IRA has been one of the Trump Administration’s biggest targets under its “Unleashing American Energy” agenda, which aims to abandon U.S. clean energy investments, promote fossil fuels, and slash pollution regulations. After an initial funding freeze ordered by President Trump in January, a court order to unfreeze federal aid resulted in the EPA unpausing funds for the $7 billion Solar for All grant program in early March.

As the GOP moves to pass its budget bill—which calls for $4.5 trillion in Trump tax cuts to Medicaid, food assistance, education, and climate programs like the IRA—they’re relying on a process called budget reconciliation. The Congressional procedure allows them to avoid a filibuster and pass a funding bill with only a simple majority in the Senate.

Republicans hope to complete the reconciliation bill by Memorial Day, meaning the House Ways and Means Committee will likely move quickly to draft its federal tax legislation. Whether the clean energy tax credits will be slashed or not to pay for the budget bill is still up in the air, but the uptick in bipartisan support may help protect them.