House Republicans want to keep clean-energy tax credits

A group of U.S. House Republicans warned House Speaker Mike Johnson not to repeal the clean-energy tax credits in President Joe Biden’s signature climate law, warning such a move could upend private investment in the sector and snarl ongoing projects. 

The letter, signed by 18 lawmakers, indicates Johnson may not have the support to undo the Inflation Reduction Act if the GOP retains control of the House next year. 

“Prematurely repealing energy tax credits, particularly those which were used to justify investments that already broke ground, would undermine private investments and stop development that is already ongoing,” said the letter, which was led by New York Representative Andrew Garbarino. “A full repeal would create a worst-case scenario where we would have spent billions of taxpayer dollars and received next to nothing in return.”

The letter comes as the law, projected to provide trillions of dollars in incentives to projects for electric vehicles, wind, solar, hydrogen and nuclear power, comes under political peril. Former President Donald Trump has vowed to rejigger green spending if elected and lawmakers on Capitol Hill already are hunting for new sources of revenue in anticipation of extending tax cuts that expire at the end of next year. 

While no Republicans voted for the Inflation Reduction Act, they have reason to support it now: An analysis earlier this summer of some $123 billion in clean tech spending announced since the law passed found that $105 billion went to projects in Republican districts. 

The district of Representative Mark Amodei, a Nevada Republican signer of the letter, has received some $6.7 billion in funds, according to the analysis. He backed a $2 billion loan for a battery company in his state last year from an Energy Department program that got supercharged through the climate law. An Amodei spokesperson didn’t immediately respond to a request for comment. 

Representative Buddy Carter of Georgia who also signed the letter has received some $5.3 billion in clean energy funding following the Inflation Reduction Act, according to the analysis. Incentives from the law are being used to help fund a $5.5 billion Hyundai Motor Co. electric vehicle factory in Carter’s district. A Carter spokesperson didn’t immediately respond to a request for comment.

An analysis by the group E2 of clean energy projects announced since the Inflation Reduction Act became law found 184 were planned in Republican districts while 100 were in Democratic ones.

“Energy tax credits have spurred innovation, incentivized investment, and created good jobs in many parts of the country — including many districts represented by members of our conference,” the Republicans wrote in their letter to Johnson.