GOP’s Clean-Energy Tax Credit Debate Intensifies as Party Divides Over Fiscal Strategy

Republican fiscal hawks and White House officials are working to prevent a series of Senate amendments that would delay the phase-out of clean-energy tax credits under the Inflation Reduction Act. These amendments, backed by Senate Republicans like Sen. Lisa Murkowski (R-Alaska), aim to provide temporary relief for projects already in construction. However, critics argue that the changes would strip out hundreds of billions in budget savings, potentially undermining GOP support for the broader bill. Fiscal hawks on both sides of Capitol are warning they would oppose the bill if the phase-outs of the provisions are watered down, as Republicans rely on the crackdown to offset massive tax cuts and other provisions in the megabill. The dispute is intensifying as GOP leaders race to pass the massive bill out of the Senate and send it to the House. The key issue is whether the amendments can secure sufficient budgetary offsets to avoid a major GOP revolt over the deficit impact of the bill. Senate Budget Chair Lindsey Graham and GOP leaders wield significant power in determining whether amendments without offsets require a simple majority vote or a 30-vote supermajority, with some Republicans criticizing Graham for potentially causing the reconciliation process to collapse if the amendments are approved without proper fiscal safeguards.