Solar panels and wind turbones in a grassy field with mountains in background.
Credit: Fahroni/BigStock Photo ID: 462747775

Republican divide over green energy tax credits could shake up party megabill

A group of House Republicans is clashing with party leaders over plans to gut clean energy tax credits, raising the possibility of a GOP showdown.

Kelsey Brugger, Andres Picon, Nico Portuondo and Manuel Quiñones report for Politico.


In short:

  • Several House Republicans are pushing back against their own party’s attempt to slash clean energy tax credits from the Inflation Reduction Act, fearing local economic fallout.
  • Speaker Mike Johnson and other GOP leaders support phasing out the credits to help fund Trump-aligned priorities, but some lawmakers say that could devastate investments in their districts.
  • With Republicans split and Democrats opposed, the fate of the tax package may rest with the Senate, where moderate Republicans also support preserving parts of the climate law.

Key quote:

“Across the country, there is a huge economic impact that would happen if we just cut these things off.”

— Rep. Jen Kiggans (R-Va.)

Why this matters:

Republicans have spent the last two years slamming the Inflation Reduction Act as a liberal spending spree — but now some are getting cold feet about gutting its green tax credits. Clean energy tax credits are funneling billions into red-state districts, transforming economically depressed towns into hubs for solar, wind, and battery production, and bringing jobs that are hard to hate come reelection time. Is the GOP is willing to sacrifice an economic boon — one that’s driving green manufacturing and cutting pollution — to score points in a political fight?

Read more: The real scam — rail against renewables, run away with factories

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