Clean Energy Tax Credits
The Bottom Line
Under a second term of the Biden-Harris Administration
Inflation Reduction Act (IRA) and Infrastructure Investment and Jobs Act (IIJA) implementation activities, along with other climate action, would continue regardless of which parties control the chambers of Congress.
Under a Republican Administration
There would be significant impacts, but full repeal of IRA and IIJA climate and energy programs is extremely unlikely, even if Republicans win control of the White House and both chambers of Congress.
Why?
These programs are popular and have strong political supporters.
In particular, many recipients of the IRA’s tax credits are in traditionally Republican states and other credits benefit industries traditionally associated with Republican interests.
Still, expect implementation impacts under a Republican Administration.
The Executive Branch could unilaterally impact the implementation of these tax credits. Tax credit implementation requires a lengthy rulemaking process, presenting an opportunity for a new Administration to withdraw or amend proposed rules that could have wide-ranging impacts on eligibility and credit value.
It takes 60 votes in the Senate to end a filibuster.
In a narrowly divided Senate, it is highly unlikely Republicans could assemble 60 Senators to end a filibuster and start a vote on repealing these entire laws. However, there is reason to be concerned about Republicans using certain IRA incentives and investments as “pay fors.”
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