House Republicans Seek Partial Phaseout of Green Energy Tax Credits

The Inflation Reduction Act (IRA), initially promoted as a climate solution, has become a multitrillion-dollar subsidy program with limited accountability, prompting House Republicans to push for significant rollbacks of its green energy tax credits. The House Ways and Means Committee's recent tax bill repeals or phases out several IRA credits but is criticized for not going far enough, leading to the introduction of the Energy Freedom Act, which aims to repeal over 20 subsidies by year's end. Within the GOP, divisions exist over the approach: a group of 13 House Republicans is requesting more flexibility in the phaseout provisions—such as easing supply chain requirements and extending timelines—to avoid triggering an energy crisis or higher costs for families. These Republicans emphasize the need for pragmatic adjustments to maintain investment certainty and energy reliability, contrasting with a more conservative faction advocating for full repeal of the IRA credits. The House Energy and Commerce Committee's budget proposal also includes rollbacks of clean energy incentives alongside measures for LNG permitting and Strategic Petroleum Reserve funding. Overall, the debate highlights ongoing tensions between reducing government spending on green subsidies and safeguarding energy affordability and infrastructure development.