| By Ari Natter and Mark Chediak House Republicans released their first stab at a bill to extend President Donald Trump's tax cuts, which would help pay for them by overhauling much of former President Joe Biden's landmark climate law.  Workers install solar panels on a home in San Francisco. Photographer: Michaela Vatcheva/Bloomberg The draft framework put out Monday by the Ways and Means Committee takes aim at billions of dollars of incentives in the Inflation Reduction Act, including tax credits for electric vehicles and solar and wind projects — subsidies Trump has derided as part of a "green new scam." Several segments of clean energy stand to lose out under the framework, which is an early blueprint and will likely see revisions during the legislative process. Electric vehicle credits would end after next year. A home clean energy credit would terminate after this year, making rooftop-solar systems more expensive for consumers who want to buy them. But some segments would fare far better than had been feared in the weeks leading up to the release of the proposal. Tax credits for making solar panels or batteries in the US would, for example, be phased out just a year earlier than scheduled. The draft bill takes more of a "scalpel than a sledgehammer" to the IRA, said analysts with Jefferies. Still, it's mostly bad news for the US clean energy sector and for efforts to reduce the nation's climate emissions, which the IRA was estimated to cut by 43% to 48% below 2005 levels over the next decade, according to one analysis. The overhaul would raise energy costs for US households by as much as 7% in 2035, according to a preliminary analysis by the Rhodium Group. The plan would save the government more than $560 billion on energy tax credits over 10 years, according to an official non-partisan congressional estimate. But the House proposal is far from final and is already facing pushback in the Senate. There, key Republicans have vowed to soften the blow for emerging technologies. The plan "needs refinement," said Thom Tillis, a North Carolina Republican, who serves on the Senate's tax writing committee and was one of four Republicans to sign a letter to Senate leadership last month vowing to defend Democrats' Inflation Reduction Act's energy tax credits. "It needs more transitions. It's not quite what we would author out here." Senator Lisa Murkowski, an Alaska Republican and moderate who also signed the April letter vowing to defend the credits, said she anticipated changes. "Anything that comes over from the House, almost by law, we've got to redo," Murkowski told reporters. While there are almost certainly compromises ahead, the draft offers a measuring stick of how much and what House Republicans want to cut — and where the biggest fights might be with their Senate counterparts. Here's who loses big, and not quite so big, under the proposal. EV makers and buyers Tesla Inc., General Motors Co. and other electric vehicle makers and their customers stand to be among the biggest losers. Biden's climate law extended a lucrative tax credit of up to $7,500 for the purchase of an EV and also expanded the credit to allow used and commercial electric vehicles to qualify. The Republican tax plan would eliminate the consumer vehicle credit by the end of next year. Only carmakers that have sold fewer than 200,000 EVs by the end of this year would would be eligible to receive it in 2026. The GOP proposal also ends credits for used and commercial electric vehicles. The repeal of all three credits would result in more than $190 billion in savings for the government over 10 years, according to the congressional estimate. Solar-shopping homeowners Homeowners who want to buy solar panels and other clean energy systems for their homes would lose a popular 30% tax credit that would be repealed at year's end under the proposal. The move, if it becomes law, would be a blow for those who want to invest in producing their own clean energy as a hedge against rising utility bills and power outages. The tax change will also hurt solar-equipment makers such as Enphase Energy Inc. and SolarEdge Technologies Inc. The move would save the government $77 billion over 10 years, according to the estimate. Utility-scale renewables The Republican plan phases out and and puts new restrictions on a pair of investment and production tax credits for wind, solar and other clean electricity production. Both credits would start to phase down for projects placed in service starting in 2029, and would completely end for any projects after 2031. In addition, the Republican bill doesn't allow projects that use materials from foreign adversaries such as China and Russia. And the transferability of tax credits would also be pinched, which utilities developing renewables say would result in higher customer bills. But the news for solar and wind was better than expected, since many investors had anticipated a swifter phase-out. JPMorgan analysts said the GOP plan "aligns with, or exceeds, the more bullish end of investor expectations." Shares of First Solar Inc. climbed on Monday. —With Emma Sanchez Read the full story about the House's plan as well as the response to it from key senators. To stay up to date on the evolving climate policy landscape, please subscribe. | 
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