Why some Republicans want to keep a key part of the Inflation Reduction Act

Repeal of clean energy tax credits could cause energy crisis.

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(Mark Hulbert, an author and longtime investment columnist, is the founder of the Hulbert Financial Digest; his Hulbert Ratings audits investment newsletter returns.)

CHAPEL HILL, N.C. (Callaway Climate Insights) — A growing number of Republicans and right-of-center think tanks are joining with those on the left in recognizing that it would be a bad idea to repeal the clean energy tax credits that were a key part of the Inflation Reduction Act (IRA).

The tax credits include the Clean Electricity Production Tax Credit (IRS Code Section 45Y), which provides for a tax credit to utilities for producing zero-emission electricity, and the Clean Electricity Investment Tax Credit (IRS Code Section 48E), which provides for a tax credit for investment in clean electricity.

ConservAmerica, formerly known as Republicans for Environmental Protection, argued in a February report that the elimination of these credits “would raise customer [electricity] rates, reduce economic growth and eliminate jobs.”