Treasury Secretary Janet Yellen on Thursday touted the successes of the Inflation Reduction Act’s (IRA) clean energy tax credits and argued that efforts to roll them back would be a “historic mistake.”
“There are some out there who want to eliminate the credits I’ve talked about today,” Yellen said at Wake Tech Community College in Raleigh, N.C. “As we see clearly here in North Carolina, this would be a historic mistake.”
Yellen pointed to the 90,000 families in the state who have taken advantage of IRA tax credits for their homes, claiming $100 million in residential clean energy credits and $60 million in home energy efficiency credits.
“Rolling them back could raise costs for working families at a moment when it’s imperative that we continue to take action to lower prices,” the Treasury secretary said.
“It could jeopardize the significant investments in manufacturing we’re seeing here and across the country, along with the jobs that come with them, many of which don’t require a college degree,” she added, referring to the IRA’s clean energy tax incentives for companies.
“And it could give a leg up to China and other countries that are also investing to compete in these critical industries,” Yellen continued.
While the IRA passed Congress in 2022 without any Republican support, some GOP lawmakers have similarly voiced concerns about axing the law’s clean energy tax credits in recent weeks.
A group of 18 House Republicans sent a letter to Speaker Mike Johnson (R-La.) in early August, urging him not to target the credits if the GOP maintains or expands its majority in the lower chamber next year.
They suggested that repealing the credits could undermine growth in the energy sector, where companies have already broken ground on investments under the assumption that the credits would remain in place.
“Energy tax credits have spurred innovation, incentivized investment, and created good jobs in many parts of the country — including many districts represented by members of our conference,” the GOP lawmakers wrote.
“We must reverse the policies which harm American families while protecting and refining those that are making our country more energy independent and Americans more energy secure,” they added.
