Congressional Republicans are looking for ways to pay for extending the tax cuts scheduled to expire at the end of the year. Repealing the green energy tax subsidies expanded or introduced in the Inflation Reduction Act is an appealing option. We at the Tax Foundation estimated repealing all of these tax breaks would raise $851 billion over the next decade.

However, several House Republicans recently signed a letter defending parts of the act. Partial repeal could still raise significant revenue. If lawmakers choose this path, they should use a two-pronged approach: scrapping the credits that don’t work and simplifying the ones that do by getting rid of the “everything bagel” provisions weighing them down.

The Inflation Reduction Act introduced or expanded more than 20 tax programs with the primary goal of reducing greenhouse gas emissions. However, most modeling of the act shows the law is most effective in reducing power sector emissions.

Subsidies for transportation and buildings do not deliver the same climate benefits. In the case of the electric vehicle tax credits, studies from both before and after the Inflation Reduction Act have found that most credit recipients would have bought electric vehicles anyway.

Nonetheless, the credits’ costs keep rising. Thanks to new Environmental Protection Agency tailpipe regulations and

© The Hill