IRA Tax Credit Tracker
House Republicans have begun drafting the legislative text for the budget bill they intend to pass through the reconciliation process. This process bypasses the Senate filibuster and allows the bill to be sent to the President’s desk with only a simple majority vote. As debate is underway, the fate of the Inflation Reduction Act’s (IRA) tax credits remains to be seen.
Some House Republicans are urging the GOP party to “take a scalpel, not a sledgehammer approach” to the IRA. Most recently on March 10, 2025, 21 House Republicans, led by Rep. Andrew Garbarino (R-N.Y.), wrote a letter to House Ways and Means Chairman Jason Smith (R-Mo.) urging him to preserve IRA energy tax credits. While specific credits were not mentioned, Representatives such as Mariannette Meeks Miller (R-W.V.) have said that “Tax incentives like the tech-neutral clean energy credits under 45Y, 45E, and the 45Q carbon sequestration credit and the 45X advanced manufacturing credit aim to strengthen manufacturing capability and reduce the engineering, procurement and construction risk that have plagued major energy projects.” Activity on the Hill is also busy as numerous and various industry associations make their case to Republicans about preserving specific IRA energy tax credits.
Below, ML Strategies is actively tracking IRA tax credit developments, updating as needed.
| Tax Credit | Credit Type | IRC Number | Summary of Credit and Latest Guidance | |
|---|---|---|---|---|
| Alternative Fuel Vehicle Refueling Property Credit | Fuel Tax Credits | §30C | Issued on Septemeber 18, 2024, the proposed guidance clarifies that refueling property must be used to store or dispense clean-burning fuel or to recharge electric motor vehicles. |
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| Clean Fuel Production Credit | Fuel Tax Credits | §45Z | Issued on January 10, 2025, the Proposed Rule states that the credit is for the domestic production of clean transportation fuel, which is divided into two broad categories: sustainable aviation fuel (SAF) and non-SAF transportation fuel. The credit is equal to the product of the applicable amount per gallon (or gallon equivalent) for any transportation fuel that is produced by the taxpayer at a qualified facility during the taxable year sold by the taxpayer in a qualifying sale and the emissions factor for such fuel as determined under the Code. |
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| Tax Credit for Alternative Fuels | Fuel Tax Credits | §6426 | Amended on August 16, 2022, this credit provides tax credits for alternative fuels and alternative fuel mixtures, with a $0.50 per gallon credit for certain alternative fuels and a credit against excise tax liability under section 4081. |