Even though the Trump administration may not have the votes to fully repeal the IRA, it "could still push to cut or curtail a number of the law’s federal tax credits," Patterson reports. "Credits for wind power and electric vehicles could be among the first."
Hyundai Motor Group officially broke ground on its Georgia electric vehicle "metaplant" in 2022. |
Republican House members have already moved to keep incentives intact. Patterson writes, "Eighteen Republican House members sent a letter to Speaker Mike Johnson (R-La.), asking him to stick with incentives for clean-energy projects in the IRA. Most of those House members were re-elected. Johnson has indicated he isn’t planning to repeal the law."
Besides many red states seeking to preserve their IRA benefits, ethanol-producing corn states are weighing in. Patterson explains, "The IRA has substantial subsidies for ethanol production, and a big part of future ethanol sales will rely on decarbonizing its production by capturing the carbon and storing it underground due to regulations in key markets in the U.S. and overseas."
Georgia is an example of a red-leaning state reaping hefty rewards from climate law changes. It "has among the highest number of clean-energy projects and jobs funded by the IRA," Patterson reports. "That includes a $7.6 billion Hyundai Motor Group manufacturing complex to make electric vehicles."
Rep. Buddy Carter (R-Ga.) said that "while he thought the IRA was a bad idea, he doesn’t support full repeal," Patterson adds. Carter told him, “We need to just look at it instead of taking a sledgehammer to it. We need to dissect it carefully to see what might be in there that’s working.”
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