Renewable energy tax credits face House and Senate Republicans
The House-passed version of the "One Big, Beautiful Bill" seeks to reduce and even eliminate many of these credits, which were passed by the Inflation Reduction Act of 2022.
Andy Harris on Capitol Hill/ Al Drago
As the Senate continues to debate Donald Trump's mega bill, the Freedom Caucus of the House of Representatives warned that it will not accept Senate changes to the significant reduction to renewable energy tax credits. In effect, the House-passed version of the"One Big, Beautiful Bill" seeks to reduce and even eliminate many of these credits, which were approved by the Inflation Reduction Act of 2022.
The notice came after four Republican senators, enough in number to block the president's headline legislation, released a joint letter calling for caution on "large-scale" repeal of the aforementioned credits.
"While we support fiscal responsibility and prudent efforts to optimize the tax code, we caution against full repeal of the current credits, which could cause significant disruption for the American people and weaken our position as a global energy leader," wrote Lisa Murkowski (R-AK), Thom Tillis (R-NC), John Curtis (R-UT), and Jerry Moran (R-KS).
In turn, the group of senators acknowledged the need for "reforms to our tax system to ensure efficiency, accountability, fiscal sustainability and implementation that respects the rule of law."
"The American people didn’t send us here to cave to the swamp"
In this context, the Freedom Caucus posted a message on its social networks to clarify its position on the Senate's demands.
"We want to be crystal clear: if the Senate attempts to water down, strip out, or walk back the hard-fought spending reductions and IRA Green New Scam rollbacks achieved in this legislation, we will not accept it," reads the statement from the group currently chaired by Congressman Andy Harris.
"The House Freedom Caucus Board will stand united holding the line. The American people didn’t send us here to cave to the swamp — they sent us here to change it," they added.
">🚨House Freedom Caucus Board: We Stand Firm – No Senate Rollbacks of Conservative Wins.🚨
— House Freedom Caucus (@freedomcaucus) June 6, 2025
The House Freedom Caucus delivered real victories for the American people in the One Big Beautiful Bill. We want to be crystal clear: if the Senate attempts to water down, strip out, or…
In addition, a group of 13 moderate House Republicans signed another letter, urging senators to review and improve the tax credit dissipations.
"We believe the Senate now has a critical opportunity to restore common sense and deliver a truly pro-energy growth final bill that protects taxpayers while also unleashing the potential of U.S. energy producers, manufacturers, and workers," said the group led by Brian Fitzpatrick (R-PA)and Jen Kiggans (R-VA).
What does Trump's megaley do to renewable energy tax credits?
Specifically, it would do the following:
Eliminate credits for used electric cars, clean energy manufacturing credits and tax subsidies to produce batteries, solar panels, wind turbines and critical minerals, and credits for the purchase of efficient appliances.
In turn, it cuts the clean energy investment credit from 30% to 10%, limits the duration of the renewable energy production credit, and would add certain domestic production restrictions for new electric vehicle credits. Specifically, it reserves for cars with 100% domestically produced batteries and for manufacturers legally based in the country.
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