Legislation with massive implications for clean energy in the US has been making progress in Congress. The Republican party’s “big beautiful bill”, introducing sweeping changes to taxes and government spending, would phase out most of the tax credits for low-carbon energy that were created, expanded or extended in the Inflation Reduction Act (IRA) of 2022.
To unpack the proposals and examine what they might mean for the US and the world, host Ed Crooks is joined by some of the Energy Gang’s top policy wonks:
- Amy Myers-Jaffe, Director of NYU’s Energy, Climate Justice, and Sustainability Lab
- Robbie Orvis, Senior Director for Modelling and Analysis at the thinktank Energy Innovation
- Ray Long, President and Chief Executive of the American Council on Renewable Energy
They discuss whether the phaseout of tax credits for wind, solar and storage will deter the development of renewable energy. The credits have created a whole industry to support investment in new renewables projects. What happens if those credits go away?
The group also dig into the crucial details of the proposals, including changes to the transferability of tax credits, and more stringent provisions on “foreign entities of concern” or FEOCs. Those rules could affect the majority of clean energy projects in the US.
As of Tuesday 20th May, the game is not over. Some Republicans in the House and the Senate senators think the proposals don't fit with the administration’s bigger goals, and have been fighting to save at least some of the credits.
The gang set out the various options for how the negotiations over the bill could play out, and assess the potential damage.
And they ask the question: could clean energy in the US actually be better off without support from tax credits?
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