House GOP Pushes Major Clean Energy Cuts as Senate Republicans Signal Willingness to Revise Rollbacks

House Republicans have passed a sweeping reconciliation bill that significantly rolls back clean energy tax credits established under the Inflation Reduction Act (IRA), sending a strong message to the clean energy sector. The legislation, passed early Thursday, includes aggressive changes that restrict tax benefits for renewable energy sources like wind and solar while offering support for nuclear energy. These amendments go further than earlier drafts and have sparked concerns among industry stakeholders about the potential loss of billions in investments and tens of thousands of jobs.

Senate Republicans Signal Willingness to Revisit and Revise House Clean Energy Rollbacks

While the House has taken a hard stance, Senate Republicans appear more open to softening the bill. With only a slim margin for dissent in the Senate, several key Republicans are signaling discomfort with the extent of the House’s rollbacks. Senator Thom Tillis of North Carolina, a member of the Senate Finance Committee, stated that there is significant work ahead to address the timeline and scope of clean energy credits. Other senators like Lisa Murkowski, John Curtis, and Jerry Moran have also expressed interest in reevaluating the House provisions.

Although some Senate Republicans support a more measured approach, not all are aligned. Senator Moran, for instance, supports phasing out wind and solar credits but remains cautious about the potential damage of the House version. Others, like Senators Kevin Cramer and Shelley Moore Capito, previously opposed the deep cuts proposed by the House Ways and Means Committee. Meanwhile, Democrat Senator Ron Wyden pointed out that many Senate Republicans have supported technology-neutral energy credits, which include geothermal and nuclear power, suggesting room for bipartisan agreement.

House Vote Sparks Industry Alarm as GOP Backs Cuts Despite Past Support

Despite vocal support from some House Republicans for clean energy tax credits in the past, most ultimately voted in favor of the bill, prioritizing broader GOP objectives. This shift disappointed clean energy advocates who had relied on prior statements from these lawmakers. Representative Jen Kiggans, while voting for the bill, expressed deep concern about the recent aggressive rollbacks and hopes the Senate will reinstate critical protections. Representative Andrew Garbarino, who missed the vote but indicated he would have supported the package, had earlier criticized the changes as overly conservative.

For the clean energy industry, the House vote served as a stark warning that political assurances do not guarantee legislative support. Chris Moyer, a former Senate aide and now communications consultant, emphasized the vote as a “wake-up call” for the industry, warning that partisan politics often override nuanced policy concerns. As the Senate prepares to deliberate, advocates are pinning their hopes on Republican senators showing more moderation to correct what they view as harmful provisions in the House-passed bill.