Eighteen Republicans Defend Inflation Reduction Act Provisions

In a recent letter, a group of 18 House Republicans wrote to House Speaker Mike Johnson (R-LA) to defend certain provisions of the Inflation Reduction Act.

While the letter does not mention elective payment, elective payment was a key element of IRA.

As a result, the American Public Power Association is encouraging public power utilities represented by these members to reach out and express appreciation for the letter and its demand for certainty and to underscore the need to retain elective payment going forward.

“We agree the partisan process of passing the IRA created a deeply flawed bill,” the House Republicans wrote, but added “prematurely repealing energy tax credits, particularly those which were used to justify investments that already broke ground, would undermine private investments and stop development that is already ongoing.”

Specifically, they said, “A full repeal would create a worst-case scenario where we would have spent billions of taxpayer dollars and received next to nothing in return.”

In April 2023, House Republicans drafted and passed H.R. 2811, the Limit, Save, Grow Act of 2023, which would have repealed the tax provisions of the Inflation Reduction Act.

The measure was largely seen as a signal expressing frustration with the fact that IRA was advanced without Republican support.

House Republicans then introduced in June 2023, H.R. 3938, the Build It in America Act, which would have repealed portions of IRA, including a new “tech-neutral” tax credit set to take effect in 2025, and the electrical vehicle tax credit, but which would otherwise have left IRA provisions intact.

The House has not voted on H.R. 3938, and House Republicans have not introduced any further versions of legislation to repeal IRA wholly or in part.

However, members and staff have said that there will be a wholesale review of IRA in 2025 as part of a broader discussion of the expiration of roughly $3.4 trillion worth of temporary tax breaks from the Tax Cuts and Jobs Act of 2017.

Based upon the progression from full repeal of IRA in H.R. 2811 to partial repeal in H.R. 3938, staff and members have generally advised that a complete repeal is unlikely, but every provision will be under review, according to APPA.

Given this background, the letter is noteworthy for putting its signatories on record as explicitly supporting IRA, at least in part, APPA said.

APPA said it will continue to underscore the point that the credit provisions in IRA are of no use to public power without elective payment.

Republican representatives signing the letter included: