A key provision in President Donald Trump’s sweeping domestic policy package seeks to roll back the clean technology tax credits established under the 2022 Inflation Reduction Act. These credits had been central to the Biden administration’s climate agenda, offering incentives for electric vehicles, rooftop solar, and industrial decarbonization.
The House-passed version of the bill would eliminate the majority of these subsidies, as Republican leaders continue to falsely frame the IRA as the Green New Deal. According to Heatmap, Senate Republicans have so far preserved most of the House’s repeals, though the Finance Committee has yet to weigh in on the most contentious element — the IRA’s tax credits, which are now a flashpoint among Republicans as backlash grows in red districts that have reaped the law’s economic benefits.
That intraparty tension stems from a geographic and economic reality: Many of the IRA’s largest beneficiaries are Republican districts. According to a June 2024 CNN analysis of Rhodium and MIT data, nearly 78% of IRA-linked clean energy investments, totaling $268 billion, have gone to GOP-held districts, fueling EV plants, solar factories, and battery storage facilities across the South and Midwest. With repeal now on the table, some Republicans are hedging, criticizing the Biden-era law rhetorically while quietly working to safeguard the economic gains in their own districts.
This tension was highlighted during the June 4 episode of CNN's Inside Politics, when chief climate correspondent Bill Weir walked through the political risk Republicans face. While hardliners demand an immediate repeal of the credits, others within the GOP are urging caution, with some warning they may oppose the bill entirely if the clean energy incentives are gutted. Weir noted that GOP districts are “some of the biggest beneficiaries” of IRA-linked investment and warned that repealing the credits now would amount to “about 75,000 permanent, operational jobs in red, Republican districts that would evaporate if this bill goes away.”