House GOP Budget Proposal Cuts Billions in Clean Energy, Repeals Key Solar, HVAC Tax Credits

House Republicans have introduced a sweeping budget and tax package that threatens to roll back key clean energy tax credits and climate programs established under the Inflation Reduction Act. The proposed legislation would repeal the Section 25C HVAC tax credit and the Residential Clean Energy Credit (25D), which support residential energy efficiency and renewable energy investments, such as geothermal systems and solar installations, with the 25D credit scheduled to expire nearly a decade earlier than planned. Additionally, the proposal advances a phaseout of wind and solar tax credits by 2032, tightening eligibility requirements and cutting funds for environmental justice initiatives and clean energy programs by billions of dollars. While some Republicans are seeking to balance conservative budget goals with energy reliability concerns, environmental advocates warn these cuts would increase pollution, harm vulnerable communities, and undermine U.S. climate targets. The legislation also includes draconian Medicaid and health insurance marketplace reductions, further illustrating the broad scope of spending rollbacks. Stakeholders from industry groups and environmental organizations have expressed strong opposition, highlighting the potential disruption to the clean energy sector and the broader negative impact on the economy and public health.