Republicans Split Over Clean Energy Tax Cuts Threatening GOP Tax Bill

Republicans in Congress are deeply divided over the proposed tax and budget bill that seeks to extend Trump's 2017 tax cuts while drastically cutting clean energy tax credits from Biden's Inflation Reduction Act (IRA). Moody's recent downgrade of the U.S. credit rating to Aa1 criticized persistent fiscal deficits and growing debt, with some Republicans dismissing the downgrade as politically motivated. Key GOP figures like Representative Juan Ciscomani face pressure as the clean energy tax credits have spurred economic growth and job creation in their districts, including expansions by companies like Lucid Motors. House GOP leaders, including Speaker Mike Johnson, support eliminating these credits to help fund Trump-aligned priorities, but pushback from within the party highlights concerns about the economic fallout in red-state districts. The divide complicates efforts to pass the reconciliation megabill, with hardline conservatives demanding deeper cuts and others warning of the risks to local economies and jobs tied to clean energy investments. With Democrats opposed and Senate moderate Republicans favoring preserving parts of the climate law, the fate of these tax provisions remains uncertain amid ongoing negotiations.