Tax Bill Triumph for Energy Surplus; Senate’s Turn Next

TL/DR –

The article discusses the potential repeal of the Inflation Reduction Act’s (IRA) green energy tax credits under President Trump’s administration. The recently passed One Big Beautiful Bill Act by House Republicans proposes to phase out these credits by 2028 and introduces a construction-start deadline to prevent companies from receiving these credits unless they started construction within 60 days after the bill’s enactment. However, the bill’s success is uncertain in the Senate, where Republicans may seek to make changes, including preserving more of the tax credits or extending the phaseout period.

Fueling The Conversation, Week of May 26th, 2025

With the election of President Trump and a Republican-majority Congress, the potential repeal of the Inflation Reduction Act’s (IRA) green energy tax credits is being advocated in the “big beautiful” reconciliation bill. As discussed in a Washington Times op-ed, slashing corporate subsidies aligns with Mr. Trump’s promises and fiscal reality.

Last week, House Republicans achieved this by passing the new One Big Beautiful Bill Act. It phases out tax credits for clean electricity production by 2028 and includes a construction-start deadline, making it hard for subsidies to be revived.

Despite initial doubts, the removal of tax credits was supported by Republicans, apart from New York Representative Andrew Garbarino. Now, the success of the One Big Beautiful Bill Act depends on the Senate, where its prospects are uncertain. Senate Republicans are reported by Politico to be considering changes to the bill, possibly preserving more tax credits or extending the phaseout period.

Further preservation of the IRA’s tax credits should be rejected by Republicans as wasteful. Any proposal to keep more of the tax credits will be opposed by fiscal hawks wanting more cuts in the bill. Time is vital if Republicans want the bill on President Trump’s desk by July 4th. Squabbles over the IRA’s tax credits shouldn’t delay this.

Fueling the Conversation, a weekly column by IER President Tom Pyle, uses economic logic and hard facts to advocate for energy freedom, opposing policies which limit production and hurt everyday people.

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