By Valerie Volcovici
WASHINGTON (Reuters) -A group of Republican lawmakers urged the House committee drafting President Donald Trump’s proposed tax cuts in the upcoming budget reconciliation bill to preserve key clean energy tax credits enacted under the Biden administration to protect private sector investments in their districts, according to a letter circulated on Monday.
Led by New York Republican Congressman Andrew Garbarino, the letter called on Ways and Means chair Jason Smith to avoid “disruptive changes to our nation’s energy tax structure” that could upend clean energy projects underway and raise consumer prices, and take a “targeted” approach to repealing Inflation Reduction Act tax credits.
WHY IT’S IMPORTANT
The letter has the signature of 21 House Republicans who have called on Congressional leaders and the White House to protect certain clean energy tax credits despite the Republicans’ plans to repeal the IRA’s electric vehicle tax credits and other climate-related measures, arguing they support the president’s “energy dominance” agenda.
The House, which Republicans control by a razor-thin margin, plans to pass Trump’s tax-cut agenda and fund border and military priorities in one big bill. This gives the lawmakers leverage as they negotiate the details of the bill.
CONTEXT
Around 85% of private-sector investments in clean energy and manufacturing projects incentivized by the IRA have gone to Republican Congressional districts, according to a report released last year by energy research group E2.
This letter includes three more signatures to a similar letter sent to House Speaker Mike Johnson sent last year.
KEY QUOTE
“Both our constituencies and the energy industry alike remain concerned about disruptive changes to our nation’s energy tax structure. Many credits were enacted over the course of a 10-year period, which allowed energy developers to plan with these tax incentives in mind,” the letter said.
(Reporting by Valerie Volcovici; Editing by Stephen Coates)
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