Renewable energy-related icons on top of coins, reflecting energy subsidies. Reviving energy subsidies would distort markets, raise costs, and slow innovation, undermining efforts to build a more efficient, reliable, and competitive US energy system. (Shutterstock/Doidam 10)

Reviving Energy Subsidies Is a Step Backward

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Reviving energy subsidies would distort markets, raise costs, and slow innovation, undermining efforts to build a more efficient, reliable, and competitive US energy system.

Some in Congress are pushing to revive energy subsidies phased out under the One Big Beautiful Bill Act (OBBBA), including efforts to reinstate many of the energy tax credits expanded under the Inflation Reduction Act. 

These proposals focus largely on promoting subsidies for wind and solar electricity generation and “green” energy manufacturing, particularly by restoring the production and investment tax credits. These two subsidies alone steered capital toward wind and solar and away from oil and gas at the cost of at least $70 billion in taxpayer dollars per year.

Supporters argue that reinstating these subsidies would create “a stable foundation for long-term American growth.” But it rests on a........

© The National Interest