The House votes to reverse the IRA’s tax incentives
Last week, the Republican-controlled House passed debt bill H.R. 2811 on a slim margin, with no Democrats and four Republicans voting against the measure. The legislation proposes slashing clean energy tax incentives secured by the Inflation Reduction Act (IRA), among other things.
House Speaker Kevin McCarthy (R-Calif.) stated, “We have raised the debt limit,” in a press conference after the vote.
Businesses in the clean energy sector, however, are opposed to this latest piece of legislation. Since the IRA’s passage, a total of 77,261 jobs are projected to come from green energy projects in Republican-led districts, in addition to estimates of $337 billion in investments for large solar, wind and storage products.
Peter Davidson, CEO of Aligned Climate Capital, told Reuters, “[H.R. 2811] is completely destabilizing. We are not just talking about cynical American investors that are used to this kind of politics, but you are influencing capital decisions made in Korea and Europe.”
Now on its way to the Democratic-controlled Senate, it’s unlikely H.R. 2811 will make it into law. Even if it were to pass through the Senate unchanged, President Joe Biden vowed to veto it if it comes to his desk.
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