POLITICO Energy

How Republicans could modify the IRA green credits

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Apr 29, 2025
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INSIGHT

Republicans Balance Clean Energy Changes

  • Republicans see clean energy tax credits as a source of funds to pay for their budget package.
  • They avoid full repeal to keep business certainty and satisfy some GOP moderates.
INSIGHT

Selective IRA Credit Targeting

  • Some IRA provisions like the EV tax credit and methane fee face likely full repeal due to GOP unpopularity.
  • Others, like carbon capture and biofuels, may remain intact with GOP backing.
INSIGHT

Phase-Out Changes Risk Innovation

  • Republicans may shorten phase-out dates of clean electricity credits, removing emissions-based triggers.
  • This risks hurting newer clean tech projects like small modular nuclear reactors and geothermal that need more development time.
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