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

This report by Energy Innovation uses the Energy Policy Simulator to analyze the economic and environmental impacts of repealing federal clean energy tax credits and funding programs, specifically those established under the Inflation Reduction Act (IRA). The analysis compares a 'Current Policies' scenario against a 'Repeal' scenario starting in 2025, finding that such a repeal would lead to significant job losses, increased household energy costs, reduced GDP, and higher air pollution.

• The Inflation Reduction Act (IRA) has already driven $600 billion in private investment across approximately 750 domestic clean-energy projects, resulting in the creation of over 406,000 new American jobs as of January 2025.
• Repealing federal clean energy tax credits and funding programs would increase annual cumulative household energy costs by nearly $32 billion between 2025 and 2035. Annual consumer energy bills would rise by more than $6 billion across all American households in 2030 and exceed $9 billion by 2035, with average per-household increases of $48 in 2030 and $68 in 2035.
• A repeal of these policies would negatively impact the economy by reducing GDP by more than $160 billion in 2030 and nearly $190 billion in 2035. This would result in the loss of nearly 790,000 jobs in 2030 and more than 700,000 jobs in 2035.
• The repeal would lead to increased air pollution, with emissions rising by nearly 260 million metric tons of carbon dioxide equivalent (Mt CO2e) in 2030 and over 530 Mt CO2e in 2035. This increase in pollution is projected to cause more than 360 additional premature deaths annually by 2030 and more than 320 by 2035.
• Proposals from the Trump administration to repeal federal policies and freeze IRA funding have already stalled over 60 new projects, resulting in the loss of more than 42,000 announced jobs and $57 billion in investment through February 2025.

APA

Energy Innovation (2025). REPEALING FEDERAL ENERGY TAX CREDITS WOULD COST AMERICAN JOBS AND INCREASE HOUSEHOLD ENERGY BILLS. https://energyinnovation.org/wp-content/uploads/National-IRA-Rollback-Update-March-2025_FINAL.3.19.25.pdf

Chicago

Energy Innovation. REPEALING FEDERAL ENERGY TAX CREDITS WOULD COST AMERICAN JOBS AND INCREASE HOUSEHOLD ENERGY BILLS. 2025. https://energyinnovation.org/wp-content/uploads/National-IRA-Rollback-Update-March-2025_FINAL.3.19.25.pdf.

Wikipedia

{{cite report |author=Energy Innovation |title=REPEALING FEDERAL ENERGY TAX CREDITS WOULD COST AMERICAN JOBS AND INCREASE HOUSEHOLD ENERGY BILLS |date=March 2025 |url=https://energyinnovation.org/wp-content/uploads/National-IRA-Rollback-Update-March-2025_FINAL.3.19.25.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}}, institution = {Energy Innovation}, year = {2025}, month = mar, url = {https://energyinnovation.org/wp-content/uploads/National-IRA-Rollback-Update-March-2025_FINAL.3.19.25.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }