House Republicans Wednesday go ahead As the tax bill cut billions of dollars in climate-related funds, reduces regulations, and phases out the clean energy tax credit too early, it is part of President Trump’s “a, big, beautiful bill.”

The core of Republican budget legislation targets key climate and energy regulations Inflation reduction method.

Cuts affect businesses and consumers, thus affecting renewable energy, manufacturing, energy efficiency and electric vehicles. Meanwhile, House Republicans proposed simplifying fossil fuel permits, eliminating funds for pollution from the Clean Air Act, and allocating $2 billion to strategic oil reserves.

According to a report by Clean Investment Report, the Lower Inflation Act has resulted in $321 billion in climate investment and is still investing $522 billion. Congress is tasked with finding $1.5 trillion in spending to fund President Trump’s tax cuts.

House Republicans want floor votes next week The bill will go to the Senate before Memorial Day.

Four Republican senators wrote to Senate Majority Leader John Thune, warning the panel about the “full repeal” of the tax credit, adding that the abolition of credit would damage businesses investing in the Tax Framework for the Inflation Reduction Tax Act. They also added that cuts will lead to higher energy costs.

Twenty-one House Republicans wrote a similar letter in March urging energy credit cuts obtained under the Inflation Reduction Act. CBS News 2024 found that over 80% of spending and tax credits on the Inflation Reduction Act are used in the Republican Congressional District.

Environmental groups and renewable energy companies have been lobbying on Capitol Hill to protect the tax credits they say are crucial to supporting new industries. Raghu Belur, co-founder of solar module maker Enphase Energy, expected to change the IRA, but did not expect them to go so far.

"I think there will be a sliding path, I think there will be a reasonable transition period. Instead, it becomes very sudden," he told CBS News.

His company has manufacturing plants in South Carolina and Texas, which is achieved through the Inflation Reduction Act. But Bell is also concerned about the downstream impact of businesses forming around renewable energy, such as solar installers, often small businesses.

Among their concerns, Belur and the Solar Industry Association have been focusing on the importance of the tax credit that helps homeowners fund solar projects. The Republican budget proposal will abruptly end credit by the end of 2025. He said the credit is 2034. He said the credits help support customers’ demand for nascent businesses and that the renewable energy sector ultimately has the momentum promised at its industry stage.

"For the past 100 years, fossil fuels have been receiving subsidies," Belur told CBS News. "I have always believed that subsidies have to be catalysts, not crutches, and we are not asking for unlimited expansions to that."

Trade group estimates that the Solar Industry Association estimates that 75% of affected credit and spending cuts will affect local economies in Republican areas.

"At a time when a state that overwhelmingly voted for President Trump, this proposed legislation will effectively dismantle the most successful industrial open-ended efforts in U.S. history," the group said in a statement.

Several tax credits and incentives will be prematurely or end, affecting a variety of projects, including solar, geothermal, nuclear, wind and hydrogen. The $7,500 tax credit for electric vehicles that Trump's presidential campaign will end, as well as the manufacturing credit for producing electric vehicles.

Funds for other inflation reduction bills are expected to be cut as well. Rep. Brett Guthrie, chairman of the House Energy and Commerce Committee, wrote in an op-ed in this week’s Wall Street Journal that the cuts would include $6.5 billion in inflation-reducing bill funds that provide designations for the Environmental Protection Agency’s greenhouse gas reduction fund, clean pollution fund, clean pollution, clean ports and environmental justice justice justice judges.

Evan Chapman, senior policy director at Clean Tomorrow, a nonpartisan clean energy advocacy group, believes that the budget version proposed by the Republican Party will make it more difficult to rapidly increase energy production through renewable energy and could cause the U.S. renewable energy industry to lag behind the rest of the world.

"This is largely a repeal of the inflation reduction bill," Chapman told CBS News. "What the bill will do is to reduce energy availability, increase the cost of upcoming energy on the grid, and make it more difficult to innovate U.S. technologies that will bring clean energy to the market."