House Committees are starting to come back with their proposals for budget reconciliation with the House Ways and Means Committee proposing significant changes to the clean energy tax credits that would be dismal for climate and clean energy.
These changes include things like:
- Phasing out tax credits for production and investments in clean electricity and existing nuclear power from 2029 to 2032. The new clean power plants, which take years to permit and build, would have to be operational by those dates to qualify for the tax credits.
- Ending tax credits for home energy efficiency and heat pumps by the end of this year
- Ending the 30% tax credit for rooftop solar and batteries by the end of this year
- and much more—see this post for more detail.
According to Early Rhodium analysis: "The proposed language will raise energy costs for American households by as much as 7% in 2035, stifle energy technology innovation, increase pollution, and could put significant investment at risk."
So the fight is far from over. There’s work we can do—and LTEs we can write—before the full House vote, the Senate Finance Committee’s work to draft its portion of the budget reconciliation package and the full Senate vote.
In good news, a growing band of lawmakers are speaking up on the fate of the clean energy tax credits with positions both for and against. This spreadsheet lists all the GOP members who have weighed in by state.
- If your representative is one of the Republicans who signed a letter in support of the clean energy tax credits or spoke up against the House Ways & Means Committee’s decision, write an LTE thanking them and encouraging them to continue to fight for the tax credits.
- If your representative is one of the Republicans who signed the opposition letter, or is on the Ways and Means Committee, write an LTE reminding them that the clean energy tax credits are bringing economic benefits—especially to red districts. It hurts your state to lose them.
- If your representative is a Republican who hasn’t signed any of these letters, write an LTE emphasizing how the clean energy tax credits have helped your state or district. You can view state and district specific information here: data to defend the IRA spreadsheet.
- If all your MOCs are Democratic: Your goal is to pen an LTE to be submitted to a newspaper in your nearest geographically red district or state. This Congressional districts map will help you identify that information.
Talking points & data:
- Clean energy tax credits are driving jobs, investment and pollution cuts across the country. They should remain in place.
- Investment, jobs & projects are overwhelmingly benefiting GOP districts; 78% of IRA spending has gone to Republican-held suburban & rural districts across the US.
- A new report warns lawmakers that gutting clean energy incentives would create significant economic damage – lost jobs, lost GDP, and higher consumer costs.
- New analysis lays out how federal programs and clean energy tax credits can drive economic growth and jobs for every state over the next decade.
- CCL’s clean energy tax credits action page has more talking points.
Thanks for all you do!
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