House Republicans are proposing significant cuts to green tax credits under Joe Biden’s Inflation Reduction Act, potentially impacting Americans’ household income by over $1,000 annually through increased utility bills and job losses. Despite Donald Trump’s dismissal of climate spending as a waste of money, data from the Clean Energy Buyers Association reveals that rescinding these credits could raise expenses for Americans in both red and blue districts. The rollback is projected to raise electricity and gas prices, leading to job losses and economic slowdown.

Ceba’s CEO, Rich Powell, emphasizes the need for Congress to promote private investment in affordable, reliable energy sources to combat the cost-of-living crisis. The focus is on credits 48E and 45Y for clean energy investment and production, with the House ways and means committee proposing to phase out these incentives after 2031. The study predicts that at least 19 states could experience increased energy costs for consumers and industries if the rollbacks proceed as planned.

New Jersey stands to suffer the most significant economic losses if these credits are repealed, with projected increases in household gas and utility bills and the loss of thousands of jobs. The study estimates a substantial average annual household income loss and a decrease in state GDP. The research also highlights the impact on state-level electricity markets, driven by growing data center demand from tech giants like Amazon, Google, and Meta.

An earlier Ceba report forecasted that repealing these credits would lead to a $110 increase in annual household utility bills for the average American by 2026, with Wyoming facing the most significant rise in household costs. The data underscores the potential financial burden and economic repercussions of cutting green tax credits.