On Sunday, March 9, twenty-one House Republicans sent a letter to U.S. Representative Jason Smith (MO-8), Chairman of the House Ways and Means Committee, highlighting “the importance of prioritizing energy affordability for American families and keeping on our current path to energy dominance.” The letter advocated for the energy tax credits, which fall under the jurisdiction of the Ways and Means Committee, as they oversee “all taxation, tariffs, and other revenue-raising measures.”
These energy tax credits offer various benefits to the American people. They include incentives to adopt clean vehicles and install home energy improvements, which in turn help them save money with lower transportation and energy bills. They also benefit American businesses by rewarding them for generating clean electricity that helps meet rising domestic energy demand.
However, on Monday, January 27, the White House Office of Management and Budget (OMB) issued a memo instructing federal agencies to “temporarily pause all activities related to obligation or disbursement of all Federal financial assistance,” although it was later rescinded. Since then, constituents across Democratic and Republican districts alike have had trouble accessing the federal funding that they had been relying upon. Republicans have been hit particularly hard: a 2024 E2 report found that of the 335 clean energy and vehicle announcements at the time, nearly 60% of the projects, plus 85% of the investments and 68% of the jobs, were in red districts. Further, of the top 20 districts by investment, 19 were Republican-held districts.
Now, Rep. Andrew Garbarino (NY-2), the co-chair of the bipartisan Climate Solutions Caucus, has organized his colleagues to vocalize their opposition to eliminating or restricting these credits. In the letter led by Garbarino, the group acknowledges that they “strongly support the Administration’s America First national energy dominance initiative.” Rep. Garbarino then shared with Politico, who first reported on the letter, “These [credits] are helping the president accomplish what he said he wanted to do in his campaign, and that was to make America an energy dominant country.”
However, the letter also insists that “an all-of-the-above energy approach, combined with a robust advanced manufacturing sector, will help support the United States’ position as a global energy leader.” The tax credits are an essential part of that all-of-the-above approach, with many American companies in the private sector openly relying on them as they “make major investments in domestic energy production and infrastructure for traditional and renewable energy sources alike.” As Rep. Mariannette Miller-Meeks (IA-1) explained recently in a hearing, “Tax incentives like the tech-neutral clean energy credits under 45Y, 45E, and the 45Q carbon sequestration credit and the 45X advanced manufacturing credit aim to strengthen manufacturing capability and reduce the engineering, procurement and construction risk that have plagued major energy projects.”
Photo Courtesy Rep. Andrew Garbarino
The letter expresses concern that any changes now would jeopardize all the “capital allocation, planning, and project commitments” that have come with those investments. Rep. Garbarino explained to Politico that a “Full repeal right now of energy tax credits would be a disaster for what companies have paid for, for what we’ve already invested in with taxpayer dollars. Even starting to phase them out would end up making a project moot.”
The Republicans who signed the letter are simultaneously worried about limiting the country’s ability to deploy new energy production, especially as President Trump works to bring manufacturing, jobs, and entire supply chains to the U.S. and build new artificial intelligence data centers here. If the energy sector cannot keep up with demand, it would lead to soaring costs for families, especially for “energy credits with direct passthrough benefit to ratepayers, where such repeals would increase utility bills the very next day.” Another signatory, Rep. Jennifer Kiggans (VA-2), noted that “America cannot afford to turn a blind eye to how existing clean energy tax credits are actively helping our Armed Forces, small businesses, and everyday families.”
Therefore, the letter asks that “any proposed changes to the tax code be conducted in a targeted and pragmatic fashion.”
Photo Courtesy Rep. Jen Kiggans
The letter arrives just in the nick of time as meetings begin on the text of the budget bill. The Republicans aim to implement and extend tax cuts for a final reconciliation bill that Rep. Smith hopes to have on President Trump’s desk by Memorial Day. With the Republicans maintaining a majority by four votes in the House, passage will require widespread agreement among the party. However, Rep. Garbarino told Politico, “We have 20-plus members saying, ‘Don’t just think you can repeal these things and have our support.’ ”
It is not the first time Republicans in the House of Representatives have sent such a letter. Eighteen of them sent one in a similar vein to Speaker Mike Johnson back in August, in which they also voiced their support for energy tax credits. With four of them not winning their elections, the fourteen signers to the new letter who also signed the first include Rep. Garbarino, plus:
- Juan Ciscomani (AZ-6)
- David Valadao (CA-22)
- Young Kim (CA-40)
- Earl “Buddy” Carter (GA-1)
- Marianette Miller-Meeks (IA-1)
- Erin Houchin (IN-9)
- Don Bacon (NE-2)
- Thomas Kean, Jr. (NJ-7)
- Mark Amodei (NV-2)
- Nick LaLota (NY-1)
- Michael Lawler (NY-17)
- David Joyce (OH-14)
- Jennifer Kiggans (VA-2)
Notably, according to E2, Rep. Carter’s district was home to the second-most announced projects since the passage of the tax credits, with seven projects associated with $3.5 billion in investments and 4,462 jobs. Meanwhile, Rep. Amodei’s district was tied for the fourth-most announced projects at five, and it generated the third-most investments in the country at $6.6 billion and the second-most jobs at 5,050. Other standouts include Rep. Houchin’s district, with two projects corresponding to $845 million in investments and 1,200 jobs; Rep. Joyce’s district, with one project corresponding to $435 million in investments and 160 jobs; and Rep. Miller-Meeks’ district, with two projects corresponding to 100 jobs.
Photo Courtesy Congressman Mark Amodei
Seven new signatories now joined them:
- Vince Fong (CA-20)
- Jeff Hurd (CO-3)
- Gabe Evans (CO-8)
- John James (MI-10)
- Ryan Mackenzie (PA-7)
- Rob Bresnahan (PA-8)
- Dan Newhouse (WA-4)
Many of the new signatories’ districts are home to essential energy projects. For example, according to E2, Rep. Gabe Evans’ district has attracted three projects since the passage of the tax credits, associated with $440 million in investments and 1,232 jobs. Meanwhile, in Rep. John James’ district in Michigan, Stellantis last year announced plans to invest $235.5 million to upgrade an assembly plant to produce the Ram 1500 REV, a light-duty truck. This would make it the company’s first domestic facility to build a fully electric vehicle.
Photo Courtesy Stellantis
Overall, the Republican legislators who signed this letter, as well as the majority of Republican representatives, have significant reasons to support continuing the energy tax credits that are so beneficial to American families and businesses.
