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House GOP Advances Plan to Slash $560 Billion in Clean Energy Incentives

The House Ways and Means Committee approved sweeping cuts to Inflation Reduction Act subsidies, while industry groups and some Republicans push to retain key credits.

Miniatures of windmill, solar panel and electric pole are seen in front of words Clean energy in this illustration taken January 17, 2023. REUTERS/Dado Ruvic/Illustration
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Overview

  • The House Ways and Means Committee has advanced a plan to eliminate or phase out $560 billion in clean energy and manufacturing tax credits over the next decade, targeting subsidies from the Inflation Reduction Act (IRA).
  • The proposal includes the early termination of the 45V hydrogen and 45U nuclear production tax credits, sparking lobbying efforts from trade groups and industry leaders to preserve them.
  • Analysts warn the proposed cuts could increase U.S. energy costs by up to 7% by 2035 and disrupt domestic clean energy manufacturing and job creation.
  • Moderate Republicans, including Rep. Claudia Tenney and Sen. Kevin Cramer, have raised concerns over the short timelines for phasing out credits critical to emerging energy technologies.
  • The legislation now moves to the Senate, where some Republicans signal they will seek changes to preserve select clean energy incentives.