Let’s start with one of the most powerful tools supporting rapid deployment of new energy generation and a modern, reliable, and affordable electricity grid for American homes and businesses: the IRA’s clean electricity tax credits. The Production Tax Credit (PTC) (45Y) is a technology-neutral tax credit that subsidizes the production of zero-emission sources like solar, wind, nuclear, hydropower, and geothermal. For every kilowatt hour (kWh) of clean energy generated, the producer gets a base credit of 2.6¢/kWh if they meet certain criteria. Similarly, the Investment Tax Credit (ITC) (48E) provides a credit of 30 percent (or more) of the investment into these same zero-emission energy generation technology projects, including energy storage.

Changes in the Reconciliation Bill:

The tech-neutral tax credits are phased out and have many new restrictions placed on them.

• Tax credits begin to phase out for projects placed in service in 2029 (eligible for 80 percent of credits in 2029, 60 percent in 2030, 40 percent in 2031, and full repeal after that).
• All date cut-offs are now when projects are “placed in service” instead of when they begin construction, which jeopardizes new and existing investments.
• Transferability of the credit from project sponsors to third-party buyers with tax liability is no longer allowed. This would further undermine investment in new projects.
• The GOP’s proposal applies a new, unworkable Foreign Entity of Concern (FEOC) requirement to the credit, restricting it for any entities that are deemed by the Trump administration to be "foreign-influenced entities" or that make substantial payments (≥ percent per transaction or ≥15 percent in aggregate) to businesses overseas. These provisions take effect two years after enactment and would strangle investment in new energy generation.

Key Impacts: 

Repealing the clean energy tax credits would worsen the affordability crisis, raise energy bills, harm grid reliability, kill jobs, and inflame the climate crisis.

• Skyrocketing energy prices: Full repeal of the clean energy tax credits would raise American household energy bills. It could increase annual energy bills up to $140-$220 per household across the country in 2040, and over $500 per year in some states. The W&M proposal, which guts the tax credits, would approach those levels.
• Kill good-paying jobs: Full repeal of the 45Y and 48E clean energy tax credits alone would result in roughly 100,000 fewer full-time jobs across the country by 2040. The W&M proposal would approach those levels.
• Repealing the clean energy tax credits would harm grid reliability. These tax credits are enhancing grid reliability in the face of increased electricity demand and extreme weather. Clean energy is the fastest, cheapest way to add new power to the grid. In fact, clean energy accounted for 93% of the new energy capacity added to the U.S. grid last year. 
• These changes jeopardize billions of dollars of existing investments, including any project underway now that won’t be fully operational until 2028 or later.
• Slashing the clean energy tax credits would worsen the climate crisis. Saving the 45Y and 48E tax credits would cut climate pollution by 300 to 400 million tons compared to no tax credits in 2035. That’s 29-46 percent lower than a scenario without clean energy tax credits. After a year marked by devastating, billion-dollar climate disasters, floods, and fires, it’s more important than ever that we address climate head-on. 

The IRA’s electric vehicle (EV) tax credits have been rapidly accelerating America’s clean auto industry and jobs, while making EVs more financially accessible for some families. Households and commercial companies can receive tax credits for purchasing new electric vehicles (up to $7,500) and used electric vehicles (up to $4,000), as well as for chargers and installation. 

Changes in the Reconciliation Bill: 

• The GOP’s bill eliminates the IRA’s 30D clean vehicle credit for most vehicles at the end of 2025 with a one-year extension for a limited number of vehicles, which means that households will no longer be able to receive a tax credit of $7,500 for a new qualifying EV.  
• The bill also guts the used clean vehicle credit 25E(g) at the end of the 2025 calendar year, meaning households can no longer receive a tax credit of $4,000 for purchasing a previously-owned electric vehicle. 

• The bill further eliminates the qualified commercial clean vehicles credit 45W(g), with an exception carved out for vehicles placed in service before 2033 and under a binding contract entered into before May 2025. 

• The GOP terminates the alternative fuel vehicle refueling property credit 30C(i) at the end of 2025.

Key Impacts:

• Fully repealing the IRA’s EV tax credits would drive a wrecking ball through the American-made EV industry, leading to the potential cancellation of as much as 100 percent of all planned construction and expansion of American EV assembly capacity. That’s according to the latest analysis from Princeton University’s ZERO Lab, assuming that the EPA’s tailpipe emissions regulations are repealed alongside the 30D and 45W tax credits. The same analysis finds that roughly 8.3 million fewer EVs and plug-in hybrids could be driving on American roads in 2030. 
• For households, new and used electric vehicles would become less financially accessible, meaning consumers would have fewer transportation options. 
• Repealing the EV tax credits would cause major job losses, according to the CEO of the Ford Motor Company, and benefit China, according to General Motors. 

The Advanced Energy Manufacturing Credit (45X) provides an incentive to manufacturing facilities that produce clean energy components or systems in the U.S. Facilities that produce solar, wind, advanced batteries, and certain critical minerals are rewarded for re-shoring supply chains in America. 

Changes in the Reconciliation Bill: 

This bill eliminates the manufacturing tax credit at the end of 2031, and terminates tax credits for wind energy components sold after 2027. Importantly the proposed bill applies a new unworkable Foreign Entity of Concern (FEOC) requirement to the credit, restricting it for any entities that are deemed by the Trump administration to be "foreign-influenced entities" or that make substantial payments (≥5% per transaction or ≥15% in aggregate) to businesses overseas. This provision will make the 45X credit fundamentally unusable, even before the credit is sunsetted.

Key Impacts: 

The 45X Advanced Energy Manufacturing Credit has sparked a renaissance in U.S. manufacturing, especially for electric vehicles, advanced batteries, and solar energy and their supply chains The credits have helped incentivize over $200 billion in new investment in the U.S. and positioned the U.S. to be competitive in critical 21st century global industries. This incentive has contributed to job and manufacturing growth in districts that Republicans represent. The GOP’s call for repeal would directly harm jobs and livelihoods of their constituents, and send American manufacturing jobs overseas. 

Thanks to the IRA, households can take tax credits of 30 percent off, up to $2,000, for installing a heat pump or heat pump water heater, plus $1,200 for weatherization and insulation via the Energy Efficient Home Improvement Credit (25C). The 25C tax credit helped 2.3 million American families improve their homes and reduce their monthly energy bills in 2023. Families are saving an average of $130 a year in energy costs. By 2032 homeowners are expected to use the credit enough to cut peak electric demand by 3,400 MW.

The New Energy Efficient Home Credit (45L) provides incentives to builders of homes that meet Energy Star or Zero-Energy Ready Home standards. This credit has assisted with the construction of nearly 350,000 efficient new homes in 2024 and cut homeowner energy bills by about $450 per year.

Changes in the Reconciliation Bill: 

The Energy Efficient Home Improvement Credit (25C) is eliminated as of the end of 2025. The New Energy Efficient Home Credit (45L) is eliminated for homes acquired after the end of 2025, unless the home construction began before May 12, 2025. 

Key Impacts: 

Cutting building energy efficiency credits takes money out of people’s pockets by making home energy upgrades more expensive and raises everyone’s utility bills by reducing efficiency and putting more pressure on the electric grid. Households can currently save $990 per year on utility bills if they utilize the 25C tax credit and these credits create 240,000 jobs. By effectively terminating the Energy Efficient Home Credit for new buildings starting TODAY, this is a major gut punch to any builders trying to provide new homes to address the housing crisis.

Dating back to 2005, the Residential Clean Energy Tax Credit provides households with a 30 percent tax credit for rooftop solar, wind power, geothermal heating systems, and battery systems. In 2023, 1.2 million American families took advantage of the residential clean energy tax credit, and now 5 percent of US households have solar. And all of that small-scale solar adds up, with over 66GW installed, amounting to more than one-third of US solar capacity.

Changes in the Reconciliation Bill: 

The Residential Clean Energy Tax Credit is eliminated as of the end of 2025.

Key Impacts: 

Households would see higher costs for home energy upgrades and lose access to $1,250 in savings per year on utility bills. At the same time, we would be cutting a huge source of new energy capacity just as demand on the grid is increasing, which will raise energy costs for everyone. Plus, cutting the residential clean energy tax credits would kill hundreds of thousands of jobs in the home energy and rooftop solar sector. 

The transferability provisions for various energy tax credits included in the IRA makes it possible for more companies and communities to access tax credits for their cost-cutting, job-creating energy projects. Through transferability, a project sponsor that may not have tax liability can sell their energy tax credit to a third party that does. This reduces the cost of the project and expands the universe of entities that can benefit from these important incentives. Furthermore, transferability has been used to benefit new clean energy technologies and manufacturing facilities, helping to grow new industries that are not reliant upon complex tax equity financing deals.

Changes in the Reconciliation Bill: 

Transferability is repealed for all applicable tax credits effective for construction beginning two years after the enactment of this bill, and applies to any fuel production-related credits after December 31, 2027. 

Key Impacts:

Transferability broadens capital access, particularly for more local project developers, manufacturers, and fuel producers that have traditionally lacked access to this investment market. In fact, it’s already catalyzed more than $500 billion in private capital since 2022. Without this tool, significant chunks of the clean energy tax credits will be cannibalized by large banks and complex tax equity deals, which is an unnecessary waste of taxpayer money. Some clean energy developers will be shut out from this critical market, significantly diminishing our ability to meet the growing energy demand driven by artificial intelligence (A.I.) and data centers. This repeal will strangle the booming clean energy market — driving up costs for households and limiting investments in energy production at a critical moment. 

• Direct Pay (aka Elective Pay) allows states and local governments and non-profit organizations to access 12 of the IRA tax credits and is not impacted by the Ways & Means proposal—however, the policy would be rendered fundamentally useless if the underlying tax incentives are repealed, especially those supporting clean electricity, electric vehicles, and charging infrastructure.
• Clean Fuels Production Credits (45Z) are extended to 2031 with increased generosity for fuels with land use impacts and "renewable natural gas.”
• Carbon Capture Credits (45Q) are amended so that credits cannot flow to a specified foreign entity. Transferability is repealed.
• Hydrogen Production Tax Credit (45V) is eliminated at the end of 2025.
• Nuclear Tax Credit (45U) is phased out beginning in 2029 (80 percent in 2029, 60 percent in 2030, 40 percent in 2031, and 0 percent after 2031).

The $27 billion Greenhouse Gas Reduction Fund (GGRF) is the largest grant program within the IRA. This $27 billion is divided into three programs: the National Clean Investment Fund (NCIF), the Clean Communities Investment Accelerator (CCIA), and Solar for All. Not only does this program provide a significant investment in pollution-reducing clean energy technology, but it also benefits communities that have been historically overlooked and underserved, bringing greater equity to the clean energy transition. For months, the Trump administration has waged an unsubstantiated assault on this fund. At every turn, the administration has been unable to justify its attacks to undermine this program, failing to offer evidence to support its bogus claims of fraud, waste, or abuse.

Changes in the Reconciliation Bill:

Republicans have proposed repealing section 134 of the Clean Air Act and rescinding all unobligated balances in the GGRF program.

Key Impacts:

The GGRF is unlocking a historic wave of public and private investment, delivering local economic development opportunities that would not have materialized without this program, especially in disadvantaged communities. But the Trump administration has already been attacking the GGRF through an illegal funding freeze, and a court battle is currently raging with program awardees, in particular the NCIF and CCIA programs. The GGRF funding has technically been obligated, and only minimal GGRF funds remain unobligated and available for rescission. But the E&C proposal would harm program implementation and oversight at EPA. It may also represent an attempt by Congress and the administration to block or claw back funds that have been legally obligated. 

This first-of-its-kind $3 billion federal program aims to empower disadvantaged communities to determine and design their own visions of pollution reduction and clean energy investment. The Environmental Justice (EJ) Block Grants, also known as the Community Change Grants, provide highly flexible funding that goes directly to nonprofit organizations serving these communities. This means projects are designed by and for communities to address their unique needs and build resilience to extreme weather events and environmental risks.

Changes in the Reconciliation Bill:

Republicans propose completely repealing section 138 of the Clean Air Act, eliminating the Environmental Justice (EJ) Block Grants program, and rescinding any unobligated funding, which would deprive disadvantaged communities of hundreds of millions of grant dollars.

Key Impacts:

Without EJ Block Grants, there will be less financial support for on-the-ground, community-led organizations that provide life-changing services to households based in disadvantaged communities or living near sacrifice zones. Examples of critical services include community-led pollution monitoring, prevention, and remediation; projects that reduce indoor air pollution; projects to counter health risks from urban heat islands, extreme heat, and wildfires; improved community engagement in public processes; and technical assistance. 

The Department of Transportation (DOT) and Environmental Protection Agency (EPA) set corporate average fuel economy (CAFE) standards for efficiency and greenhouse gas emissions from cars and trucks. These standards have saved drivers trillions of dollars and drastically reduced harmful pollution from vehicles—reducing smog and health impacts like asthma and heart disease. Rescinding these standards is not allowed by the rules of budget reconciliation, but Republicans are trying to repeal them anyway. 

Changes in the Reconciliation Bill:

Republicans propose repealing the National Highway Traffic Safety Administration (NHTSA) Corporate Average Fuel Economy (CAFE) efficiency standards and the EPA’s greenhouse gas emissions standards for passenger and light trucks starting in model year 2027 and efficiency standards for heavy-duty trucks starting in 2030. This action is plainly inadmissible under congressional budget reconciliation rules. The bill also rescinds any unobligated funding for the clean heavy-duty vehicles program and loans to support vehicle and vehicle supply chain manufacturing facilities.

Key Impacts:

If Republicans successfully gut these vehicle standards, we would end up with less efficient and more polluting vehicles, burning 70 billion extra gallons of gasoline through 2050 and increasing climate pollution by more than 710 million metric tons. Eliminating these standards would increase costs by $600 over the lifetime of new vehicles. Increased pollution would lead to greater health risks (asthma, heart disease, cancer) from toxic air pollution. Attempting to repeal these rules via reconciliation would seriously stretch the limits of reconciliation by trying to set regulations via this budgetary process. 

As it currently stands, the Federal Energy Regulatory Commission (FERC) reviews applications for the construction and operation of interstate natural gas pipelines under the authority of section 7 of the Natural Gas Act. FERC review ensures that applicants certify that they will comply with Department of Transportation safety standards.

Changes in the Reconciliation Bill:

This bill allows natural gas pipeline projects to pay a fee of $10 million to bypass the normal permitting process and then guts the normal judicial review process by severely limiting who can bring forward lawsuits.  

Key Impacts:

This makes a farce of our permitting process and essentially legalizes corruption with a pay-to-play privilege for gas pipelines. Americans will be severely impacted by gas pipelines built through their communities. Medical professionals and frontline leaders have long documented the devastating health, economic, and local environmental harms from this fossil fuel infrastructure.

Under the Natural Gas Act, the Department of Energy (DOE) has the authority to determine whether proposed liquefied natural gas (LNG) exports to non-Free Trade Agreement countries are in the “public interest” or not. This is part of a wider review process when considering proposed LNG export facilities.

Changes in the Reconciliation Bill:

Republicans are proposing that the DOE would be allowed to determine that a proposed liquefied natural gas (LNG) export facility is in the “public interest” if the applicant pays $1 million.

Key Impacts:

Similar to the natural gas pipeline permitting above, this normalizes a pay-to-play privilege for LNG export infrastructure, potentially expediting the build-out of these mega-polluting projects. As DOE’s own studies show, unfettered U.S. LNG exports will hurt Americans with higher electricity and gas prices and drastically worsen climate pollution. Medical professionals and frontline leaders have long documented the devastating health, economic, climate, and local environmental harms from this kind of fossil fuel infrastructure, particularly in the Gulf South. 

Methane is a potent, planet-heating greenhouse gas that oil and gas operators often flare or leak into the atmosphere. That’s why Congress passed the Waste Emissions Charge (WEC) through the IRA in 2022, requiring oil and gas operators to pay a penalty fee if they exceed a certain level of methane pollution. Soon after, the Biden-led EPA introduced a rule implementing the WEC. But at the beginning of 2025, the Republican-controlled Congress voted to eliminate that rule. Now, Congress is trying to get rid of the fee outright via the budget reconciliation bill. 

Changes in the Reconciliation Bill:

The bill attempts to completely repeal subsections (a) and (b) of section 136 of the Clean Air Act and rescinds any unobligated funding. The methane fee is retained, but the language is altered so that the fee is not collected until ten years from now. 

Key Impacts:

By cutting methane pollution and other harmful pollutants, the WEC would have helped prevent asthma attacks and other health-harming impacts. The program would have reduced an extremely harmful greenhouse gas superpollutant. Altering  the WEC will disproportionately impact communities of color and disadvantaged communities. The methane fee is also a revenue raiser, so its alteration would necessitate even deeper cuts to other vital programs to comply with the GOP’s self-imposed spending cut targets.

The Climate Pollution Reduction Grants (CPRG) are an EPA program established as part of a new Clean Air Act Section 137 created in the IRA, which provides grants to state, local, and Tribal governments to create and implement programs that reduce emissions and support jobs and communities. It was funded with $5 billion, including $250 million in planning grants, $4.6 billion for implementation grants, and the remaining balance for technical assistance and program implementation. These grants have been used to support state, local, and Tribal governments in nearly all 50 states.

Changes in the Reconciliation Bill:

The E&C Committee proposes to repeal and rescind unobligated balances in the CPRG program account. At the start of the Trump administration, the CPRG program had approximately $90 million in unobligated funding.  

Key Impacts:

Rescinding funding for the CPRG program would dramatically harm program implementation at the agency. Without these dollars, EPA staff may also be unable to process grant funding disbursements to states, cities, and Tribal nations who have received obligated funding awards. 

The Department of Energy Loan Programs Office (LPO) was created with strong bipartisan support during the George W. Bush administration, and for the last two decades, it has provided critical financing for American energy, manufacturing, mining, and other industrial projects that reduce emissions and support American leadership in the fast-growing clean energy economy. To date, the LPO has financed approximately $90 billion in innovative energy and manufacturing projects, including a $465 million loan to Elon Musk’s Tesla Motors in 2010. And at the conclusion of 2024, the LPO had collected over $5 billion in interest payments from its loans, meaning that it has made a profit for American taxpayers.

Changes in the Reconciliation Bill:

The bill would rescind unobligated balances in the LPO, which currently holds billions in unspent funds used to support loans under the 1703 program that supports clean energy and industrial transformation. These changes would also impact the Advanced Technology Vehicle Manufacturing Loan Program, which supports the global competitiveness of American automakers; the Energy Infrastructure Financing Reinvestment Program, which supports new clean energy generation and community revitalization for legacy energy communities; and the Tribal Energy Loan Program.  

Key Impacts:

The E&C proposal would essentially eliminate the LPO. This would be a devastating move, especially amidst rising energy demand and a competitive global race to build and manufacture the energy technologies that will power the 21st century. Slashing the LPO would undermine American businesses and U.S. technology leadership. Not only that, over the long term, eliminating the LPO would cost American taxpayers money, as the successful program has already returned $5 billion in profit to the American taxpayer via interest on its loans.

There are several IRA programs at DOE that  support the expansion of electricity transmission infrastructure in the U.S, critical to providing affordable and reliable power for Americans. These include the Transmission Facility Financing program; Offshore Wind Electricity Transmission Planning, Modeling, and Analysis program; and Grants to Facilitate the Siting of Interstate Electricity Transmission Lines. These programs are especially important at a time of rising electricity demand, fueled by data centers to power the race for artificial intelligence (AI), increasing electrification of vehicles and buildings, and an American manufacturing renaissance.

Changes in the Reconciliation Bill:

The bill rescinds any unobligated amounts for Transmission Facility Financing; Interregional and Offshore Wind Electricity Transmission Planning, Modelling, and Analysis; and Grants to Facilitate the Siting of Interstate Electricity Transmission Lines. Together, these programs held nearly $2.5 billion in unobligated funding at the beginning of 2025.

Key Impacts:

Republicans claim to care about energy dominance and cheap energy, but this nonsensical action would sabotage efforts to make our grid more affordable, reliable, and resilient.

The EPA’s Clean Ports Program provides $3 billion in grants to fund zero-emission port equipment and technology and to assist U.S. ports in developing climate action plans to reduce air pollutants. Grants were awarded in 2024 to 55 projects across the country that will eliminate “more than 3 million metric tons of carbon pollution, equivalent to 391,220 homes’ energy use for one year.” The vast majority of those pollution reduction benefits will be felt in frontline and disadvantaged communities in heavily trafficked port corridors.

Changes in the Reconciliation Bill:

The text proposes completely repealing section 133 of the Clean Air Act, the Clean Ports Program, with any unobligated funding rescinded.

Key Impacts:

Any cuts to the Clean Ports Program would mean more pollution at our ports, more harm to the health of our communities from toxic air pollution especially in frontline communities already burdened with higher rates of pollution-driven health impacts like asthma, and job losses from cutting these important projects already underway in states all across the U.S. 

The Advanced Industrial Facilities Deployment Program (AIFDP) was created in the IRA and funded with over $5.8 billion to advance industrial decarbonization and support American manufacturing’s global economic competitiveness. The program has provided funds for innovative low-carbon cement manufacturing projects in Indiana, Georgia, Texas, and Virginia, for next-generation aluminum manufacturing in Colorado, for low-carbon steel production in multiple states, and much more. 

Changes in the Reconciliation Bill:

The E&C Committee proposes to rescind unobligated balances from the AIFDP, which is estimated to be hundreds of millions of dollars. 

Key Impacts:

Rescinding unobligated balances from the AIFDP program would deal a major blow to U.S. global economic competitiveness as American businesses fight for market share in increasingly decarbonized steel, cement, aluminum, and other heavy industries.

The Republican E&C Committee also repealed and/or rescinded any unobligated funds from the following IRA programs. 

• Air pollution monitoring program for schools in low-income and disadvantaged communities at EPA.
• American Innovation Manufacturing (AIM) Act that aims to phase down hydrofluorocarbons (HFCs)—potent greenhouse pollutants used in refrigeration, air conditioning, and other applications. The E&C proposes to eliminate funding that helps implement this important bipartisan law.
• Funding for Efficiency, Accurate, and Timely Reviews at EPA to enhance the efficiency, accuracy, and timeliness of environmental reviews, permitting, and project approvals.
• Enforcement Technology and Public Information at EPA.
• Environmental Product Declarations at EPA for construction materials and products. This initiative aimed to enhance the standardization, transparency, and reporting criteria for EPDs, which include measurements of the embodied greenhouse gas emissions associated with materials and products used in construction.
• Fenceline pollution monitoring program at EPA to monitor pollution, particularly in communities near polluting facilities.
• Greenhouse Gas Corporate Reporting at EPA to enhance the standardization and transparency of corporate climate action commitments and plans to reduce greenhouse gas (GHG) emissions
• Lowering Embodied Carbon Labeling for Construction Materials, including developing a program for identifying and labeling construction materials with substantially lower levels of embodied greenhouse gas (GHG) emissions compared to industry averages. This initiative was designed to promote the use of low-carbon materials in construction projects, particularly in federal buildings and transportation infrastructure.
• Renewable Fuel Program at EPA for grantmaking for advanced biofuels.
• State-Based Home Energy Efficiency Contractor Training Grants at DOE that provides needed financing to states to train and procure a workforce that is able to install cost-saving home efficiency upgrades like heat pumps.