Republican budget squeezes out of House committee, but deeper IRA cuts could come

Diana DiGangi | Source: Utility DIVE | Posted 05/20/2025

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Deficit hawks voted to advance the legislation for now but said they negotiated for more cuts to clean energy incentives.

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Republican members of the House Budget Committee have allowed a significant budget bill to progress after negotiating deeper cuts to the Inflation Reduction Act (IRA). The bill faced initial opposition from several Republican representatives who demanded further reductions to clean energy incentives. Following negotiations, the committee passed the bill with a narrow 17-16 vote, although some members expressed that the cuts were still insufficient, leaving many green subsidies intact.

The proposed changes to the IRA are expected to have substantial effects on the clean energy sector, particularly regarding the investment and production tax credits for solar and wind projects. These credits would be phased down significantly after 2028, which could lead to increased financial risks and uncertainties for energy developers. Additionally, the Clean Energy Buyers Association has warned that repealing these tax credits could raise energy costs for consumers and industries across multiple states, as reliance on natural gas sources would increase.

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Source Link: https://www.utilitydive.com/news/republican-holdouts-budget-congress-inflation-reduction-act-cuts/748442/

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Republican budget squeezes out of House committee, but deeper IRA cuts could come

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