Senate Republicans are planning to make changes to the significant cuts made by the House of Representatives to clean energy tax credits under Democrats’ Inflation Reduction Act. The legislation, which passed the House early Thursday, includes more aggressive reductions in clean energy credits than earlier drafts, sparking concerns among industry groups that they could undermine billions in investment and tens of thousands of jobs across the country.
The Senate, where Republicans can only afford to lose three votes, is seen as a final opportunity to pare back some of the changes. Industry groups have warned about the potential impact on clean energy projects in Republican-held districts, leading to increased pressure on Senate Republicans to take action.
Several Senate Republicans have expressed willingness to consider changes to the House rollbacks, including Sen. Thom Tillis, who stated that “we need to do work” on the timeline and scope of production and investment tax credits. Other senators, such as Lisa Murkowski and John Curtis, also signaled a desire to re-examine the provisions added late Wednesday.
However, not all Republicans have been quick to support changes, with some expressing concerns about the potential impact of phasing out wind and solar credits. The Senate is expected to moderate the House version, but it will need to balance this with other priorities in the megabill.
The House vote has sent a message to the clean energy industry that support for these credits may not be assured until the final vote. Industry advocates are urging the Senate to “show more backbone” and make changes to address concerns about the rollbacks. With the stakes higher than ever, Senate Republicans will need to carefully consider their approach to ensure that any changes benefit the clean energy sector and its supporters.
Source: https://www.politico.com/news/2025/05/23/senate-republicans-house-rollback-ira-tax-credits-00366212