{"id":30371,"date":"2025-05-10T16:31:06","date_gmt":"2025-05-10T23:31:06","guid":{"rendered":"https:\/\/essential.construction\/news\/iras-fate-unclear-as-republicans-look-to-finance-megabill\/"},"modified":"2025-05-10T16:31:06","modified_gmt":"2025-05-10T23:31:06","slug":"iras-fate-unclear-as-republicans-look-to-finance-megabill","status":"publish","type":"post","link":"https:\/\/essential.construction\/news\/iras-fate-unclear-as-republicans-look-to-finance-megabill\/","title":{"rendered":"IRA\u2019s fate unclear as Republicans look to finance megabill"},"content":{"rendered":"<p> [ad_1]<br \/>\n<\/p>\n<div>\n<div class=\"text-to-speech\">\n    <button class=\"text-to-speech__button button\"><\/p>\n<p>            <img decoding=\"async\" class=\"text-to-speech__button__icon\" src=\"https:\/\/www.constructiondive.com\/static\/images\/audio_icon.svg?482016190122\" alt=\"-\"><\/p>\n<p>        Listen to the article<br \/>\n        <span class=\"text-to-speech__button__audio-length\">6 min<\/span><br \/>\n    <\/button><\/p>\n<div class=\"text-to-speech__controls\">\n        <audio controls=\"\" class=\"js-text-to-speech\" preload=\"none\"><source src=\"https:\/\/res.cloudinary.com\/dmgi9movl\/video\/upload\/q_1\/v1746800524\/news\/text_to_speech\/inflation-reduction-act-republicans-trump-congress-budget-bill_myg9jc.wav\" type=\"audio\/mp3\"><\/source><\/audio><\/p>\n<div class=\"text-to-speech__controls__text\">\n            This audio is auto-generated. Please let us know if you have <a rel=\"nofollow noopener\" href=\"https:\/\/www.constructiondive.com\/contact\/\" target=\"_blank\">feedback<\/a>.\n        <\/div>\n<\/p><\/div>\n<\/div>\n<h3>Dive Brief:<\/h3>\n<ul>\n<li><span><span><span><span><span><span>The Inflation Reduction Act \u2013 which passed in 2022 without any Republican support and is <\/span><\/span><\/span><\/span><\/span><\/span><a rel=\"nofollow noopener\" href=\"https:\/\/home.treasury.gov\/news\/featured-stories\/the-inflation-reduction-acts-benefits-and-costs\" target=\"_blank\">anticipated to cost taxpayers between $780 billion<\/a><span><span><span><span><span><span>\u00a0and <a rel=\"nofollow noopener\" href=\"https:\/\/www.utilitydive.com\/news\/ira-repeal-energy-costs-jobs-energy-innovation-cato-institute\/743281\/\" target=\"_blank\">$2 trillion<\/a> over its first ten years \u2013 is likely to be targeted for cuts as the <\/span><\/span><\/span><\/span><\/span><\/span><a rel=\"nofollow noopener\" href=\"https:\/\/www.congress.gov\/bill\/119th-congress\/house-concurrent-resolution\/14\/text\" target=\"_blank\"><span><span><span><span><span><span><span><span>Republican-controlled Congress aims to cut spending<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/a><span><span><span><span><span><span> by $2 trillion in order to cut taxes by $4.5 trillion.<\/span><\/span><\/span><\/span><\/span><\/span><\/li>\n<li><span><span><span><span><span><span>However, certain provisions of the IRA have won support with Republican lawmakers, setting up likely disagreements over cuts in the budget reconciliation process. That process is already expected to be \u201cvery contentious,\u201d said Harry Godfrey, who leads Advanced Energy United\u2019s federal investment and manufacturing working group.<\/span><\/span><\/span><\/span><\/span><\/span><\/li>\n<li><span><span><span><span><span><span>\u201c[House Ways and Means Committee Chairman Jason Smith] and the Ways and Means Republicans will need revenue and will be seeking it, and have been saying all along that the IRA is an area they&#8217;re going to look at,\u201d said Ryan Abraham, a principal with Ernst &amp; Young&#8217;s Washington Council advisory practice. \u201cBut obviously there are some concerns among some members.\u201d<\/span><\/span><\/span><\/span><\/span><\/span><\/li>\n<\/ul>\n<h3>Dive Insight:<\/h3>\n<p><span><span><span><span><span><span>Abraham noted the May 1 letter sent by 26 House Republicans to Chairman Smith, advocating for the preservation of the IRA\u2019s 45U, 45Y, and 48E tax credits.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>The letter advocates on behalf of nuclear power specifically, \u201c[urging Smith] to maintain federal investment in the existing nuclear energy fleet while accelerating deployment of the next generation of nuclear power technologies.\u201d<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>The 45U credit is the IRA\u2019s zero-emission nuclear power production credit, while <a rel=\"nofollow noopener\" href=\"https:\/\/www.utilitydive.com\/news\/treasury-guidance-tech-neutral-tax-credits-inflation-reduction-act-clean-electricity\/736886\/\" target=\"_blank\">48E and 45Y are technology-neutral credits<\/a>, which were targeted in legislation introduced in April by Rep. Julie Fedorchak, R-N.D.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>\u201cThere&#8217;s a lot of concern that some of the bonus items that have been created in the IRA, like direct pay and transferability, which were also in that Fedorchak bill, could also get targeted,\u201d Abraham said. However, he said, \u201cChairman Smith is aware that if he goes too far, potentially, that those [26] members are going to vote against the bill.\u201d<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>Electric vehicle-associated IRA credits remain an anticipated target, Abraham said, but \u201cwe&#8217;re not going to know until we see the bill.\u201d<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>Abraham said Smith is likely \u201cthinking about other policies that those members might also either want to protect or get in the bill, as another way to potentially appease those members,\u201d such as offering a \u201cbetter or more generous fix\u201d on the individual state and local tax deduction, or SALT, cap.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>\u201cSo I don&#8217;t think we can look at just the IRA completely on its own,\u201d he said. \u201cBut those members have mentioned that the IRA is very important to them, the jobs, economic investment, unleashing American energy, all of that.\u201d<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>In March, <\/span><\/span><\/span><\/span><\/span><\/span><a rel=\"nofollow noopener\" href=\"https:\/\/www.utilitydive.com\/news\/21-house-republicans-oppose-cutting-ira-clean-energy-credits-in-reconciliation\/742404\/\" target=\"_blank\"><span><span><span><span><span><span><span><span>21 Republicans sent Smith a letter<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/a><span><span><span><span><span><span> asking that changes to the IRA be made in a \u201ctargeted and pragmatic fashion,\u201d and this followed an August letter from <\/span><\/span><\/span><\/span><\/span><\/span><a rel=\"nofollow noopener\" href=\"https:\/\/www.utilitydive.com\/news\/inflation-reduction-act-permitting-reform-legislation-congress-elections\/730332\/\" target=\"_blank\"><span><span><span><span><span><span><span><span>18 Republican lawmakers<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/a><span><span><span><span><span><span> to Speaker Mike Johnson, R-La., making a similar request.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>Abraham said that the increasing public support from Republicans for certain IRA provisions is \u201cabsolutely\u201d setting the party up for a fight as its budget bill advances.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<h4><span><span><span><strong><span><span>Trump\u2019s role<\/span><\/span><\/strong><\/span><\/span><\/span><\/h4>\n<p><span><span><span><span><span><span>Godfrey said that <\/span><\/span><\/span><\/span><\/span><\/span><a rel=\"nofollow noopener\" href=\"https:\/\/www.utilitydive.com\/news\/trump-proposed-budget-department-energy-slashed-billions-iija-eere\/747100\/\" target=\"_blank\"><span><span><span><span><span><span><span><span>President Trump\u2019s budget proposal<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/a><span><span><span><span><span><span>, which called for steep cuts to the Department of Energy and Infrastructure Investment and Jobs Act, was \u201cmore ideological and less strategic than we&#8217;d hope,\u201d adding that he hopes the \u201cbudget process plays out in the way it often does \u2013 the President proposes and Congress disposes.\u201d<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>The president\u2019s budget came in later than it normally would, Godfrey noted, and he anticipates that budget negotiations will \u201cgo longer than previously forecast.\u201d<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>Godfrey said Trump\u2019s broad proposed cuts to IIJA were disappointing, as it \u201cwas a bipartisan package aimed at building up American infrastructure\u201d with several spending priorities like energy transportation which Democrats and Republicans have \u201chistorically had broad agreement upon.\u201d<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>\u201cIf we&#8217;re being really strategic, both from a political perspective \u2013 hey, a bunch of the stuff has bipartisan support, like, do we really want to get into a fight with congressional appropriators over stuff that has bipartisan support?\u201d he said. \u201cBut also, if we&#8217;re building for American energy dominance and for manufacturing leadership, do we really want to cut that?\u201d\u00a0<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>Godfrey noted that Trump\u2019s proposed cuts may conflict with the priorities of Republicans in Congress, and that he is \u201ccautiously optimistic\u201d that the budget will change shape as Congress negotiates.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>\u201cWe&#8217;ve seen Democrats and Republicans be willing to stand up, including Republicans in deep red states, and engage with the Trump administration and say, \u2018hey, please don&#8217;t cut this,\u2019\u201d he said. \u201cAnd we&#8217;ve seen the Trump administration acknowledge that in some cases and act upon that.\u201d<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>Godfrey said he thinks the credits included in the IRA are \u201creally key\u201d to building the U.S. energy dominance that Trump has made a priority, \u201cand pulling them back would only serve to undermine that mission, as well as undercutting economic development, particularly in Republican districts.\u201d<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>\u201cThe jobs, the billions in investments \u2013 that\u2019s happening in red districts,\u201d he said, adding that he thinks the letters from Republican lawmakers to members of leadership advocating for aspects of the IRA are \u201can acknowledgment, on the part of members, of that economic dynamic.\u201d<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<\/p><\/div>\n<p>[ad_2]<br \/>\n<br \/><a href=\"https:\/\/www.constructiondive.com\/news\/inflation-reduction-act-republicans-trump-congress-budget-bill\/747636\/\" rel=\"nofollow noopener\" target=\"_blank\">This article was originally posted at Source link <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>[ad_1] Listen to the article 6 min This audio is 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Dive &#8230; <a title=\"IRA\u2019s fate unclear as Republicans look to finance megabill\" class=\"read-more\" href=\"https:\/\/essential.construction\/news\/iras-fate-unclear-as-republicans-look-to-finance-megabill\/\" aria-label=\"Read more about IRA\u2019s fate unclear as Republicans look to finance megabill\">Read more<\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[457],"tags":[],"class_list":["post-30371","post","type-post","status-publish","format-standard","hentry","category-construction-dive","generate-columns","tablet-grid-50","mobile-grid-100","grid-parent","grid-33"],"_links":{"self":[{"href":"https:\/\/essential.construction\/news\/wp-json\/wp\/v2\/posts\/30371","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/essential.construction\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/essential.construction\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/essential.construction\/news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/essential.construction\/news\/wp-json\/wp\/v2\/comments?post=30371"}],"version-history":[{"count":0,"href":"https:\/\/essential.construction\/news\/wp-json\/wp\/v2\/posts\/30371\/revisions"}],"wp:attachment":[{"href":"https:\/\/essential.construction\/news\/wp-json\/wp\/v2\/media?parent=30371"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/essential.construction\/news\/wp-json\/wp\/v2\/categories?post=30371"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/essential.construction\/news\/wp-json\/wp\/v2\/tags?post=30371"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}