A group of four Senate Republicans warned against a “full-scale” repeal of energy tax credits passed by Democrats in 2022.
“While we support fiscal responsibility and prudent efforts to streamline the tax code, we caution against the full-scale repeal of current credits, which could lead to significant disruptions for the American people and weaken our position as a global energy leader,” wrote Republican Sens. Lisa Murkowski (Alaska), John Curtis (Utah), Thom Tillis (N.C.) and Jerry Moran (Kan.).
Their letter, addressed to Senate Majority Leader John Thune (R-S.D.), is notable since a bloc of four senators could be enough to block Republicans’ budget reconciliation bill from moving forward.
If all four are willing to hold firm, at least some of the incentives for low-carbon energy projects passed by Democrats in the 2022 Inflation Reduction Act could remain in place — though it’s not clear from the letter which incentives they hope to keep or whether they’d be open to reducing some of the credits instead of fully axing them.
“As our discussions on budget reconciliation continue, we urge you to consider each existing tax credit for its ability to: (1) spur new domestic manufacturing and investment; (2) reduce utility bills for consumers, especially in rural remote communities; and (3) ensure certainty for businesses that have already made meaningful U.S. investments based on the current credit structure,” they wrote.
However, they also acknowledged the GOP’s need to balance the budget as they try to pass tax cuts.
“We acknowledge there are necessary reforms to be made within our tax system to ensure efficiency, accountability, fiscal sustainability, and implementation that follows the rule of law,” the lawmakers wrote.
“We urge a targeted, pragmatic approach that balances these priorities without undercutting current and future private-sector investments that are vital to domestic manufacturing, energy innovation, and affordability for American families,” they said.
Republicans are trying to use a process called budget reconciliation, which allows for legislation to pass with just a simple majority in both chambers, avoiding the filibuster’s 60-vote threshold, to pass some of their legislative priorities.
If the four senators insist on keeping some of the tax credits, it could pose yet another challenge as the House deals with its own slim majorities.
The letter follows a similar message from a group of 21 House Republicans earlier this year.
