June 30, 2025


GOP Divisions Deepen Over Clean Energy Tax Credits in Megabill Showdown

In an unfolding drama on Capitol Hill, a group of Republican senators, led by Sen. Lisa Murkowski (R-Alaska), is pushing forward with amendments that could dramatically alter the fiscal landscape of a major new legislative package. These amendments aim to slow down the phase-out of clean-energy tax credits, a move that is causing a rift within the party as they scramble to pass the bill through the Senate and onto the House.

Sen. Murkowski's proposed amendment, specifically, seeks to provide a lifeline for clean energy projects that have already commenced construction, opposing the quicker elimination of credits for incomplete projects. This proposition has stirred controversy among critics who argue for a swift cessation of these credits to avoid financial bleed.

The stakes are high as the GOP counts on these phase-outs to help offset the cost of substantial tax cuts and other measures included in the megabill. Without finding adequate budgetary offsets for the amendments — which appears unlikely — the party faces a potential internal revolt due to concerns over increasing the federal deficit.

Tensions are further amplified by the strategic decisions of Senate Budget Chair Lindsey Graham and other GOP leaders, who hold the crucial power to determine the voting threshold for passing these amendments. A simple majority vote would make it easier for the amendments to succeed, whereas a 60-vote supermajority could pose a significant hurdle.

A Republican source, who spoke on the condition of anonymity, highlighted the gravity of the situation, stating, "Basically, if the amendment is set at 51 instead of 60, it’s Graham’s fault that reconciliation implodes." This comment underscores the precarious balance GOP leaders must navigate to align fiscal conservatism with legislative goals.

As the clock ticks down, the outcome of this legislative battle will not only influence the immediate legislative agenda but could also have lasting impacts on the party's unity and approach to environmental fiscal policies.