An Inflation Reduction Act tax credit with a heavy focus on domestic manufacturing could survive Republicans’ plans for a tax cut, energy and immigration bill — especially if it gets an extra anti-China twist.
The 45X tax credit, an advanced manufacturing incentive designed to spur continued growth of U.S. solar, wind and battery production, is one of the most popular provisions among Republicans.
“Domestic manufacturing is a big priority for us, and it seems that particular credit is helping with that,” said Rep. Bob Latta (R-Ohio), chair of the House Energy and Commerce Subcommittee on Energy, echoing others on the matter. “We have to figure out some of the things that are working in the IRA.”
The effort to rescue the tax credit, which has saved companies billions, comes as GOP leaders plot which parts of the Inflation Reduction Act to scrap in their party-line reconciliation bill. A growing number of Republicans have called on leaders to spare the subsidies. In a recent hearing, the leader of the House Conservative Climate Caucus specifically called out the 45X credit as one that should be spared.
