A letter signed by 12 Republican House of Representatives members voiced strong support for retaining the Biden-era Investment Tax Credit and Production Tax Credit.
As Congress nears the finish line for the budget reconciliation process, a coalition of 12 House of Representatives members from Republican voting districts are voicing their “strong support” for preserving the most critical clean energy elements of the Biden-era Inflation Reduction Act (IRA).
The letter, provided to Politico, specifically requests that Congress retain the section 48E Investment Tax Credit (ITC) and section 45Y Production Tax Credit (PTC).
“These provisions play a vital role in advancing American energy independence, spurring domestic manufacturing, reducing electricity costs for families and businesses, and strengthening U.S. competitiveness at a time of significant electricity demand growth,” states the letter.
The letter signees include Republican House members Mariannette Miller-Meeks, Jen Kiggans, Jeff Hurd, Juan Ciscomani, Zach Nunn, Mark Amodei, Don Bacon, David Valadao, Rob Bresnahan, Vince Fong, Gabe Evans, and Ashley Hinson.
“Aided by the ITC and PTC, power companies projected committing approximately $200 billion to critical grid modernization and expansion initiatives in 2023 alone,” said the letter.
E2, which tracks IRA investment announcements, said $8 billion in clean energy investment announcements have been paused or cancelled in 2025 largely due to uncertainty around clean energy tax credits.
The letter addressed to Ways and Means Committee Chairman Jason Smith said industry projections show the ITC and PTC will deliver approximately $45 billion in ratepayer savings through 2031. Repealing the credits would lead to a 10% increase in consumer electricity costs, it said.
It also highlighted the importance of retaining transferability, or the ability for tax credits to be sold to entities with tax appetites for cash.
“For companies making long-term, capital-intensive investments in energy infrastructure, the market certainty provided by the ITC and PTC is absolutely essential,” said the letter.
The letter said that as Congress undertakes tax reform and addressing national debt, it is “not unreasonable to incorporate” a phase out of tax credits but calls for charting “fiscally responsible path.”
The coalition said the ITC and PTC help support “core Republican principles” by securing energy independence, strengthening domestic manufacturing, supporting American jobs and promoting affordable and reliable power to drive economic growth.
