House Republicans on Monday announced they plan to repeal Democrats’ tax credits for electric vehicles (EVs) and phase outthose that apply to climate-friendly energy sources.
The green energy credits have long been in the GOP’s crosshairs, as party leaders have decried climate spending. But they have also emerged as a point of conflict within the party, as Republicans whose districts house low-carbon energy projects have called for at least some of them to remain in place while Freedom Caucus members have called for a full repeal.
In the text of their “big beautiful bill” released Monday, Republicans called forterminating tax credits for pre-owned EVs purchased after the end of this year and new vehicles put in service after the end of next year.
Meanwhile, the legislation also seeks to phase out credits for low-carbon energy sources. While these tax credits were expected to be a particular boon for wind and solar, they apply to any energy source that meets certain emissions thresholds.
In the GOP’s legislation, these credits will reduce to:
80 percent for projects that begins producing energy in 2029
60 percent for a project that begins producing energy in 2030
40 percent for a project that begins producing energy in 2031.
After 2031, new projects will not be eligible for the credits.
The bill also phases out tax credits for nuclear energy along the same timeline.
Meanwhile, it ends a tax credit for hydrogen energy whose construction starts after this year, while Democrats would have had the credit apply for facilities whose construction begins before 2033.
After this year, tax credits for EV chargers, home energy efficiency updates and home renewable energy like rooftop solar are also axed.
Welcome to The Hill’s Energy & Environment newsletter, I’m Rachel Frazin — keeping you up to speed on the policies impacting everything from oil and gas to new supply chains.
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