(Bloomberg) —
Four Republican senators are warning against a wholesale repeal of energy tax credits in former President Joe Biden’s signature climate law, asking their party’s leadership to instead take a measured approach.
Republicans effectively won’t be able to pass their tax agenda without them. With a 53-47 majority, the party can have no more than three defections and still pass the partisan tax bill with a tie-breaking vote from Vice President JD Vance.
“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,” said the letter, which was sent to Senate Majority Leader John Thune. The senators wrote that a full-scale repeal of the current credits “could lead to significant disruptions for the American people and weaken our position as a global energy leader.”
In addition to Senator Lisa Murkowski of Alaska, the letter was signed by Senator John Curtis of Utah, who previously led the House Conservative Climate Caucus, as well as Senator Thom Tillis of North Carolina, and Kansas’ Jerry Moran.
The letter urges Thune to consider factors such as new domestic manufacturing, reduction of utility bills and certainty for businesses that have made investments based on current tax credit structures.
Projected to ultimately provide trillions of dollars in incentives to projects for electric vehicles, wind, solar, hydrogen and nuclear power, the Inflation Reduction Act has been a target for Republicans hunting for ways to pay for extending President Donald Trump’s tax cuts. They plan to deploy special budget legislation that only requires a simple majority rather than the 60 votes ordinarily required.
“A wholesale repeal, or the termination of certain individual credits, would create uncertainty, jeopardizing capital allocation, long-term project planning, and job creation in the energy sector and across our broader economy,” Murkowski and the three other senators wrote in their letter.
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