10 Ways IRA Repeal Would Hurt Americans

June 14, 2025

Presentation Slides: cclusa.org/IRA-Repeal

8 Expert Analyses of IRA Repeal

Full Big Budget Bill

Clean Electricity Tax Credits

4 Consequences of IRA Repeal

1. A de facto electricity & gas tax
2. Imperiled American manufacturing, jobs, and economic growth
3. Reduced energy security
4. More pollution, worsened health

cclusa.org/blog

1) A de facto gas tax

Why it’s a de facto gas tax

• Repealing EV tax credits means fewer EVs on American roads
• 7.4 million fewer by 2030 (Princeton)
• 20–40 million fewer by 2035 (Rhodium)
• Law of Supply & Demand: more gas guzzlers = higher gasoline demand = higher prices
• ~3–25 cents per gallon higher than if EV tax credits are preserved

Why it’s a de facto gas tax

• Fueling an EV costs ~$800 per year less than an average new gas car ($700 vs. $1,500)
• Tens of millions of Americans would miss out on those savings
• Overall, repealing the EV tax credits would raise average American household vehicle fueling costs by $40–200 per year

2) A de facto electricity tax

Why it’s a de facto electricity tax

• Power demand will rise ~5–10x faster than it has over the past two decades
• Without clean electricity tax credits, only half as much solar & wind are deployed
• Rapidly rising demand + slowly rising supply = higher electricity rates
• Household electricity bills would rise by $46–160 per year over the next decade

3) The other kind of gas too

Why it’s a de facto natural gas tax

• With rising power demand and insufficient new clean energy deployments, utilities would have to burn more gas
• Supply & demand again: natural gas prices would rise 2–7%
• Overall, household energy costs would rise by ~$1,000–3,000 over the next decade
• Repealing home efficiency, electrification, and solar incentives leaves more households stuck paying these higher bills

4) Falling behind China on AI

Disadvantaging AI development

• Solar & batteries & wind were 94% of new U.S. electric-generating capacity in 2024
• Gas turbines face years of delivery backlogs
• Less new clean energy means everyone will be left scrambling to meet new demand
• Developers need a lot of power for data centers to train AI

5) Reduced energy security

Higher risk of blackouts

• Solar & battery deployments have prevented blackouts during recent heatwaves in Texas & California
• These kinds of heatwaves are becoming more intense & frequent
• May Texas heatwave was unseasonably early, lots of gas power plants down for maintenance
• Hampering clean electricity growth would increase blackout vulnerability

6) Imperiled manufacturing

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7) Lost jobs

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Lost jobs

• Reduced manufacturing and clean energy deployment means fewer construction and manufacturing jobs
• Reports estimate hundreds of thousands fewer jobs

8) Lost economic growth

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Lost economic growth

• Reduced manufacturing and clean energy deployment also means less investment in the U.S. economy
• “Cumulative GDP falls by more than $1 trillion as a result of fewer clean energy manufacturing and construction projects.”

9) More pollution, worse health

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More pollution, worse health

• Deploying less clean power and fewer EVs means burning more fossil fuels, more smokestack & tailpipe pollution
• Higher local air pollution would harm public health, leading to thousands of additional premature deaths over the next decade

10) More climate pollution

More climate pollution

• Less clean energy, more fossil fuels = increase in climate pollution
• U.S. emissions remain just 20–30% below 2005 levels in 2030
• Total of about 3 billion extra tons of CO2-equivalent emissions over the next decade
• Like cramming an extra 6 months’ of U.S. emissions into the next decade

10 Consequences of IRA Repeal

1) A de facto gasoline tax 2) A de facto electricity tax

3) A de facto natural gas tax 4) An AI development disadvantage

5) Reduced energy security 6) Imperiled domestic manufacturing

7) Lost jobs 8) Lost economic growth

9) More pollution, worse health 10) More climate pollution

Promising news from the Senate

Thank You!

Emails: Dana.Nuccitelli@citizensclimate.org

Nerd Corner link: cclusa.org/nerd-corner

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