Repeal the IRA in the Reconciliation Bill

In 2022, President Biden and a Democratic Congress passed the Inflation Reduction Act (IRA). No Republican voted for it in the House or the Senate. The IRA should be repealed because: 

Excessive Fiscal Burden

• The IRA’s energy subsidies are projected to cost taxpayers between $936 billion and $1.97 trillion over the next decade, with potential liabilities reaching up to $4.7 trillion by 2050. 
• This is far more than the CBO’s initial projections. The CBO’s initial score for the entire bill erroneously estimated a deficit reduction of $300 billion for the IRA.
• A new analysis by EY concluded that repealing the EV credits alone will save taxpayers $300 billion from FY 2026 – 2035. 
• A major problem is that many of the IRA’s subsidies are uncapped and tied to carbon dioxide emissions reduction targets that will never be met, leading to potentially unlimited future costs.

Inefficiency and Market Distortion

The IRA’s subsidies have led to market distortions, such as negative electricity prices, where producers continue generating power despite losses to claim subsidies. This undermines the efficiency of wholesale electricity markets, turning them into “subsidy clearinghouses” rather than platforms for cost-effective energy distribution. For years, we have fought the Wind Production Tax Credit for exactly this reason. In fact, the wind lobby agreed to phase out the Wind Production Tax Credit in 2012, but the IRA continues this and similar subsidies.   ​

Limited Job Creation at High Cost

While the IRA has led to the announcement of numerous federally subsidized projects, over 40% have been delayed or canceled. The jobs that have been created are estimated to cost taxpayers between $2 million and $7 million each, raising questions about the cost-effectiveness of these investments.​

Failing to Repeal the IRA Will Hinder President Trump’s Plan for American Energy Dominance and Break His Campaign Promise to “Terminate the Green New Deal.” 

GOP Representatives and Senators who have signed letters asking to protect the IRA’s fiscally irresponsible tax credits: