Republican leadership in the U.S. House of Representatives’ Ways and Means Committee, released a draft settlement bill Monday night that aims to revoke most of the Inflation Lower Act bills.

Landmark 2022 Law implements a series of incentives that stimulate the production of clean energy, electric vehicles, carbon capture and battery storage. Since the IRA was enacted, the law has prompted more than $275 billion in private investment in the United States.

House Republican axes fell in both expectations and surprising places.

According to the “Expected” column: EV tax credits and the ability to transfer tax credits for clean energy production from one organization to another.

The EV tax credit allows consumers to get up to $7,500 in tax credit when purchasing electric vehicles; the bill proposes to end credit in 2026 and restore the cap of 200,000 vehicles per manufacturer. Several companies, including Tesla, General Motors and Toyota, hit the ceiling a few years ago.

Transferability clauses have stimulated a whole new market with more than $30 billion in transactions in 2024 alone. This provision allows companies and other organizations to leverage IRA tax credits even if they have no tax liability. For example, churches could install solar panels and sell tax credits to companies that can take advantage of incentives.

There are more surprising changes.

Nuclear power is often a favorite of Republican lawmakers and no longer benefits from the tax credits for power generation. If the government decides to “support terrorist organizations,” the law will also terminate the tax-exempt status of environmental organizations. Advanced manufacturing will also see incentives, and tax credits for carbon capture will also be reduced, which many large oil companies publicly support.

Sustainable aviation fuel is one of the technologies that may see its incentives, and the rewards from clean energy producers are also called "adders." Contrary to what happened to the EPA, the House Bill also did not seek to back off the funds it had already been spent. The House bill would boost the date on which large projects are eligible for incentives.

Of course, these are not stones. This is a first draft of a process that will surely be messed up and confused. Lobbyists and the PAC are already launching a pressure campaign to discourage Republican politicians from voting for it, and given how many Republican regions have benefited from the IRA in just a few years, they have a chance to succeed.

Whether such ambitious abolition of existing laws will be passed under the rules of settlement is also an open question. The process allows the Senate to conduct a simple majority vote, providing income or expense for the settlement bill. Abolition of IRA is essentially the opposite.