REPEALING FEDERAL ENERGY TAX CREDITS WOULD COST AMERICAN JOBS AND INCREASE HOUSEHOLD ENERGY BILLS: Appendix A

This document is Appendix A of a report by Energy Innovation, detailing the modeling methodology used to assess the impacts of repealing federal energy tax credits. It provides a comprehensive table mapping specific sections of the Inflation Reduction Act (IRA) to their inclusion in 'Business as Usual' (BAU) and 'IRA Repeal' scenarios, explaining the calculations for credits related to renewable energy, electric vehicles, carbon sequestration, and agricultural conservation.

• The modeling for renewable energy credits (Sections 13101 and 13102) incorporates specific assumptions for domestic content and labor requirements. For onshore and offshore wind, the model assumes 100% of plants qualify for the bonus credit, while for solar, a weighted domestic content share is used based on cells, modules, and inverters. The model also assumes 50% of capacity additions qualify for the energy community bonus and applies a 7.5% transferability multiplier to reduce the credit value available to developers.
• The analysis of clean vehicle credits (Section 13401) utilizes a weighted average incentive level. This calculation is based on the incentive amount and the proportion of vehicles meeting specific criteria, including manufacturing requirements, critical minerals, Adjusted Gross Income (AGI) caps, and MSRP caps.
• For the Clean Hydrogen credit (Section 13204), the Current Policies scenario assumes electrolytic hydrogen replaces all non-by product hydrogen, including ammonia and refinery demand, with the credit active through 2032. In contrast, the IRA Repeal scenario removes the credit and assumes hydrogen production pathways remain unchanged from current levels.
• The model treats several IRA provisions as having negligible impacts or being outside the model's scope. Specifically, credits for biodiesel, renewable diesel, sustainable aviation fuel, and certain residential energy efficiency credits (Sections 13201, 13202, 13203, 13301, 13304) are included in the BAU via the Annual Energy Outlook (AEO) but are not separately modeled in the IRA Repeal scenario because their greenhouse gas and household impacts are considered small.
• Agricultural and forestry conservation efforts (Sections 21001, 21002, 23001, 23002, 23003) are modeled by matching emissions abatement potential to total funding. To remain conservative, the model phases out these incentivized practices over a four-year period in the Current Policies scenario rather than assuming the reductions are permanent.
• The modeling for battery production credits (Section 13502) applies specific values of $35/kWh for battery cells and $10/kWh for assembly for both on-road and grid batteries. The model assumes that 100% of domestically produced vehicles benefit from these cost reductions based on anticipated manufacturing capacity.

APA

Energy Innovation (2025). REPEALING FEDERAL ENERGY TAX CREDITS WOULD COST AMERICAN JOBS AND INCREASE HOUSEHOLD ENERGY BILLS: Appendix A. https://energyinnovation.org/wp-content/uploads/IRA-Repeal-Update-March-2025-Appendix-A-FINAL.pdf

Chicago

Energy Innovation. REPEALING FEDERAL ENERGY TAX CREDITS WOULD COST AMERICAN JOBS AND INCREASE HOUSEHOLD ENERGY BILLS: Appendix A. 2025. https://energyinnovation.org/wp-content/uploads/IRA-Repeal-Update-March-2025-Appendix-A-FINAL.pdf.

Wikipedia

{{cite report |author=Energy Innovation |title=REPEALING FEDERAL ENERGY TAX CREDITS WOULD COST AMERICAN JOBS AND INCREASE HOUSEHOLD ENERGY BILLS: Appendix A |date=March 2025 |url=https://energyinnovation.org/wp-content/uploads/IRA-Repeal-Update-March-2025-Appendix-A-FINAL.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{energyinnovation2025repealing, author = {{Energy Innovation}}, title = {{REPEALING FEDERAL ENERGY TAX CREDITS WOULD COST AMERICAN JOBS AND INCREASE HOUSEHOLD ENERGY BILLS: Appendix A}}, institution = {Energy Innovation}, year = {2025}, month = mar, url = {https://energyinnovation.org/wp-content/uploads/IRA-Repeal-Update-March-2025-Appendix-A-FINAL.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }