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New Report Shows Harsh Economic Reality if Congressional Republicans Repeal Climate Law Tax Credits



Washington, DC – A new report released this week by the Institute for Macroeconomic & Policy Analysis at American University shows that, if successful, Congressional Republicans’ effort to repeal the Inflation Reduction Act’s (IRA) clean energy credits would reduce our nation’s GDP by 2 percent. The House Budget Committee passed its 2025 Budget blueprint—which includes repeal of the IRA’s clean energy and climate provisions—last week.


“The IRA’s clean energy credits have a strong expansionary effect on the economy, and eliminating them would reduce GDP by approximately 2% in the long run from its projected level under current policy,” the report states.

This news comes as President Biden released his own Fiscal Year 2025 budget proposal on Monday that includes robust funding for climate priorities and programs funded by the Inflation Reduction Act and the Infrastructure Investment and Jobs Act.

 

In response, Sierra Club Executive Director Ben Jealous released the following statement:

“The GOP budget proposal, which slashes funding for climate and clean energy—and along with it, our nation’s economic recovery—is an unserious and unrealistic view of where we stand today. The Inflation Reduction Act made the most comprehensive investment imaginable in rebuilding this nation, putting us on the path to help us avoid the very worst of the climate crisis. In contrast, President Biden’s budget proposal not only strengthens funding to address climate change and clean energy, it doubles down on the IRA’s success to move us even closer toward true energy independence and further reduction of harmful emissions that will help ensure a livable planet for generations to come. It is often said that budgets are statements of values, and the stark difference between these two proposals could not be more clear.”

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