House GOP proposes fresh cuts to IRA tax credits in reconciliation
Illustration: Brendan Lynch/Axios
House Republican leaders have proposed an even faster phaseout schedule for IRA tax credits in an effort to appease conservative holdouts on the GOP reconciliation bill.
Why it matters: The changes that GOP leadership released late Wednesday would curtail the lucrative incentives even more drastically and put moderate supporters of the so-called "Big Beautiful Bill" in a tough spot when it hits the floor.
- The new draft also sets up a debate with the Senate, where some Republicans are already talking about softer treatment for the 2022 climate law.
Driving the news: The manager's amendment — unveiled during a marathon Rules Committee meeting — would move up the end of the investment and production tax credits to phase them out for projects that come onto the grid after 2028.
- Projects that begin construction 60 or more days after enactment of the bill would be ineligible, meaning that many in the pipeline today wouldn't get the incentives.
- But the new proposal would also include a carveout for advanced nuclear and nuclear expansion projects, which would only see the credit go away for projects that begin construction after 2028.
- The restrictive "foreign entity of concern" language from the original bill would remain largely in place.
Zoom in: The manager's amendment would also strike public lands sales in Utah and Nevada approved by the House Natural Resources Committee.
- Those had proven controversial, with Rep. Ryan Zinke publicly opposing the provision.
Between the lines: The IRA credits were one of several sticking points Republicans had been hashing out over the past few days among their different factions.
- But blue-state moderates were asking for a lot in negotiations. Many of them hoped for both an easier path for the IRA credits and higher caps for state and local tax deductions.
What's next: The Rules Committee is looking to approve the underlying bill and manager's package for floor consideration sometime during the night.
- After that, leadership is pushing for a final floor vote as soon as possible.
