ICYMI: POLITICO, More Republicans back IRA tax credits in reconciliation fight

Washington, D.C. — Since the passage of the Inflation Reduction Act, more than 400,000 good-paying clean energy jobs have been created, the majority benefiting Republican districts. POLITICO reported that eight Republican House members gave testimony in favor of preserving the tax credits that spurred the investments creating these jobs. Previously, 14 current House Republicans signed a letter urging leadership to preserve some of the tax credits from the IRA. 

POLITICO: More Republicans back IRA tax credits in reconciliation fight

At least eight Republicans urged their tax-writing colleagues on Wednesday to preserve tax credits created or expanded by Democrats’ climate law that the lawmakers said have brought jobs and investment to their districts.

The testimony by GOP lawmakers at the House Ways and Means Committee’s member day hearing illustrates the challenge facing Republicans as they craft a tax package to be passed via reconciliation, which is expected to repeal at least parts of the Inflation Reduction Act and help offset any revenue losses.

Republicans can only afford to lose a handful of votes given their thin majority.

Most of the lawmakers who testified Wednesday were among the 18 who signed a letter last August urging leadership to preserve parts of the IRA. But several Republicans who hadn’t signed the letter also spoke about the risks posed to projects in their districts if certain tax credits are repealed.

It comes as the Trump White House plows ahead on its efforts to roll back the Biden administration’s climate agenda, issuing an executive order Monday that paused spending from the IRA, though tax credits were not affected.

Details: Rep. John James of Michigan, who did not sign the August letter, urged his colleagues to “proceed with caution when looking to address provisions of the IRA that have incentivized onshoring of the future of automotive jobs.”

“While the bulk of the IRA is damaging policy, we must not neglect the sector-wide energy tax provisions that manufacturers and job creators rely on in my district and around the country,” James said.

Indiana Rep. Erin Houchin said repealing certain energy credits could have “severe economic consequences if not approached thoughtfully.”

“I urge the committee to take a surgical approach, with particular interest in the investments that have already been made,” Houchin said.

Rep. Mariannette Miller-Meeks of Iowa called out five credits in the IRA she said are “driving transformative investments across the U.S. energy sector.”

She named three of the law’s tech-neutral credits — the 45Z clean fuel production credit, the 45Y clean electricity production credit and the 48E clean electricity investment credit — as well as the 45X advanced energy manufacturing credit and the 45Q carbon sequestration credit.

Fellow Iowa Rep. Ashley Hinson also defended the clean fuel credit and the 40B sustainable aviation fuel credit, calling them a boon for Iowa farmers.

Texas Rep. Wesley Hunt mounted a defense for the carbon sequestration subsidy.

“45Q is one of the best tax credits the federal government provides that allows energy companies to innovate for the future,” Hunt said.

And Pennsylvania Rep. Dan Meuser said it would be a “mistake” to repeal the 45U production tax credit for nuclear energy. He said the credit supports “baseload nuclear energy” that will be critical to meet power demand from AI and data centers.

Reps. Jen Kiggans of Virginia and Buddy Carter of Georgia also urged against wholesale repeal of the climate law.

Another backer: Freshman Rep. Jeff Hurd (R-Colo.) told POLITICO in an interview Wednesday that he supports preserving the advanced manufacturing and clean electricity production credits from the IRA.

Hurd, a former energy attorney who represents the area formerly held by Rep. Lauren Boebert, said the provisions have played an important role in supporting an expansion of CS Wind’s turbine manufacturing facility in his district. President Joe Biden visited that plant in 2023 to tout the climate law.