US EditionSubsidies vs. Tax Deductions: What IRA Defenders Get Wrong
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Subsidies vs. Tax Deductions: What IRA Defenders Get Wrong
The Inflation Reduction Act of 2022 (IRA), President Biden’s signature climate bill, passed solely by Democrats, contains lucrative, essentially uncapped subsidies for wind and solar-generated power. Under current law, the tax credits phase out over four years, starting in either 2032 or when the U.S. power sector’s greenhouse gas emissions fall to a quarter of their 2022 levels — whichever comes later. An essentially uncapped phase-out defies t…
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