While Americans, and much of the world, closely watch the events unfolding in Iran and Israel, the U.S. Senate is putting the final touches on its version of the “big, beautiful” reconciliation bill, which President Trump hopes to sign into law by the Fourth of July.
On June 21, Trump posted to Truth Social, “I HATE ‘GREEN TAX CREDITS’ IN THE GREAT, BIG, BEAUTIFUL BILL. They are largely a giant SCAM. I would much prefer that this money be used somewhere else, including reductions. ‘Anywhere’ would be preferable!”
Trump is spot on. However, he failed to mention that the primary source of the green tax credits he is referring to was President Biden’s Inflation Reduction Act.
Earlier this year, The Heartland Institute published a policy study titled “The High Costs of Climate Scams: Assessing the Green Giveaways in the Inflation Reduction Act,” which found that “the true price tag of the IRA’s green subsidies” could exceed $907 billion.
This figure is roughly three times more than the $369 billion estimate from the Biden administration.
The IRA’s Investment Tax Credit and Production Tax Credit “for ‘clean’ electricity storage and generation makes up $131 billion of the IRA’s $392 billion in green tax credits, according to the Congressional Budget Office (CBO).”
It also provides $37 billion in tax credits for “clean energy and efficiency incentives such as home retrofitting of windows, insulation, and high efficiency appliances,” $19 billion for “low carbon ‘clean’ fuels,” $14 billion to incentivize people to buy new electric vehicles, and “$37 billion in tax credits allocated toward the retrofitting or construction of certain energy manufacturing facilities.”