Republican lawmakers in the US House of Representatives have outlined sweeping proposals to repeal clean energy tax credits, curtail electric vehicle incentives, and claw back climate-related funding, aligning with President Donald Trump’s agenda in a multi-trillion-dollar budget framework.
The proposals, which form part of the House Committee on Energy and Commerce’s draft plan to be voted on Tuesday, seek to raise $6.5 billion by reversing several climate provisions of former President Joe Biden’s landmark Inflation Reduction Act (IRA). Simultaneously, the House Ways and Means Committee has recommended phasing out or eliminating various high-profile tax incentives tied to renewable energy and energy efficiency.
Among the measures targeted are consumer tax credits for electric vehicle purchases and home energy improvements, as well as technology-neutral tax credits for wind, solar, nuclear, and geothermal energy—originally introduced without an expiry date. These would be progressively phased down before ending entirely in 2032.
The controversial move has drawn criticism from clean energy advocates and trade groups, who argue that the cuts contradict Trump’s proclaimed commitment to strengthening domestic energy production.
“While American businesses are demanding more energy to compete globally, these proposals will undermine our nation’s push for energy dominance,” said Abigail Ross Hopper, President of the Solar Energy Industries Association. She noted that Trump-supporting states have already seen billions in clean energy investments that are now at risk.
Trump, who is expected to propose his first full budget since returning to office, had campaigned on rolling back Biden-era climate measures, calling them burdensome to manufacturers and unnecessary in combating global warming.
While several clean energy tax incentives face elimination, credits for carbon capture and sequestration (CCS)—a technology favoured by the oil and gas sector—would remain largely intact, albeit with new restrictions on foreign ownership. A tax credit for sustainable aviation fuel would also be extended, offering a boost to the biofuel sector.
The legislative package also includes efforts to repeal key Environmental Protection Agency (EPA) regulations, such as upcoming vehicle emissions standards due to take effect in 2027. It would accelerate permitting for liquefied natural gas exports and allocate $1.5 billion to replenish the Strategic Petroleum Reserve.
In a Wall Street Journal op-ed, committee chair Brett Guthrie defended the cuts as necessary to prevent taxpayer money from being wasted on “green boondoggles,” citing grants for environmental justice and electrification efforts as examples.
Environmental advocates have strongly condemned the proposal. Lena Moffitt, Executive Director of Evergreen Action, warned, “This proposal guts investments that are cutting energy costs, powering a domestic manufacturing boom, and delivering essential support to vulnerable communities.”
Critics also noted that the bill would rescind unspent funding from at least nine IRA climate and clean energy initiatives, including tribal energy projects, clean port infrastructure, and greenhouse gas reduction programmes. Although some Republican lawmakers have expressed reservations—especially those from states benefiting from IRA-driven investment—the overall plan signals a significant rollback of US climate commitments if passed.
