More than a dozen House Republicans are urging party leaders to undo key rollbacks of Democrats’ clean energy credits that the Ways and Means Committee pushed through as part of the party’s megabill. These rollbacks are part of broader efforts to reshape the Inflation Reduction Act’s provisions, which have been a cornerstone of the Democratic administration’s climate and energy agenda. The Republicans, including Rep. Jen Kiggans (R-Va.) and 12 other moderate members, have expressed concerns that the abrupt changes, along with restrictive measures and altered funding mechanisms, could stifle investments in new energy technologies. They argue that these measures threaten to undermine the long-term growth of domestic energy production and may lead to higher costs for consumers.
The group, led by Rep. Kiggans, issued a statement warning that the current provisions could create uncertainty for both current and future energy investment projects. They emphasized the need for clarity and consistency in the regulatory framework to ensure that the nation’s energy demands are met and that consumers are protected from rising energy prices. The Republicans are calling for three specific changes to the provisions: first, they want to limit the overly prescriptive foreign entity restrictions that are intended to prevent Chinese companies from benefiting from the subsidies, arguing that these measures risk undermining U.S. competitiveness by restricting domestic energy production. Second, they criticized the mandate that access to tax credits is available only once a project starts producing energy, instead of during the construction phase, which they argue could delay projects and make them ineligible for the full phaseout period. Lastly, they are advocating for extending the transferability period of clean energy credits to match the full phaseout period, giving businesses more flexibility to make long-term investments in American energy.
While the group has not threatened to reject the party-line package outright, their push for revisions may provide cover to Senate Republicans, who have already pledged to ease some of the rollbacks once the bill moves to their chamber for consideration. Ways and Means Committee leaders, including Rep. Vern Buchanan (R-Fla.), have acknowledged the possibility of adjustments, with Buchanan expressing hope that Senate Republicans will make the necessary changes. Despite the unlikelihood of the House leadership allowing these adjustments, the Republicans are placing their hopes on the Senate’s potential intervention, suggesting that the legislative process is far from over.