The Republican Party in the House of Representatives, led by Speaker Kevin McCarthy, recently passed legislation aimed at raising the nation’s debt limit. The bill includes a freeze on government spending levels and makes various other significant alterations to current law, including creating new work requirements for certain federal assistance programs.
One notable aspect of the legislation that has garnered substantial attention is the rolling back of tax incentives, rebates, and other subsidies for renewable energy. These provisions were initially modified under the Inflation Reduction Act of 2022, which passed along party lines without any Republican support. Now that they have control of the House of Representatives, Republicans are seeking to rescind these parts of the 2022 law.
The House debt ceiling bill incorporates a multitude of amendments and repeals concerning energy credits and incentives, so let’s examine in detail the key changes made by the legislation:
Production Tax Credit: The House legislation restores previous rates for certain renewable resources and repeals the extension through 2024 and certain bonuses.
Investment Tax Credit: Reverts to prior law for certain energy properties, repealing the extension through 2024 and several expansions and bonuses.
Repeals specific tax credits: These include credits for “environmental justice solar and wind capacity,” zero-emission nuclear power, sustainable aviation fuel, clean hydrogen, and several other credits related to clean vehicles and advanced energy projects.
Read the full article on Forbes.