GOP proposes repealing clean-energy subsidies to raise debt ceiling

(Bloomberg) – House Republican leaders are proposing repealing hundreds of billions of dollars in clean-energy subsidies from Democrats’ marquee climate law in exchange for lifting the federal debt limit.

Debt-ceiling legislation unveiled Wednesday would spike the tax credits that were the centerpiece of the Inflation Reduction Act, which passed into law in August, House Speaker Kevin McCarthy said in remarks on the House floor.

The legislation will “end the green giveaways that distort the market and waste taxpayers’ money,” McCarthy said, referring to recent analysis that said the climate law’s tax credits were estimated to end up costing some $1.2 trillion.

The bill, which is slated for a vote next week, is expected to instead include elements of a House-passed energy bill designed to spur more domestic oil and gas production. It’s considered dead-on-arrival in the Democrat-controlled Senate and with President Joe Biden.