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1 1 (December 12, 2025)

handle is hein.crs/govesyz0001 and id is 1 raw text is: IRA Tax Credit Repeal in the FY2025 Reconciliation Law: Part 1 December 12, 2025 Since the enactment of the FY2025 reconciliation law, commonly known as the One Big Beautiful Bill Act (OBBBA), policymakers have expressed interest in the status of energy tax provisions enacted or modified in P.L. 117-169, the Inflation Reduction Act of2022 (IRA). The IRA enacted or expanded 20 tax credits and 2 additional tax provisions subsidizing clean energy production and increased energy efficiency. This Insight describes the OBBBA's changes to IRAtax credits for clean electricity generation and clean energy parts manufacturing. CRS Insight IN12625, IRA Tax Credit Repeal in the FY2025 Reconciliation Law: Part 2, will address the OBBBA's changes to IRA tax credits for electric vehicles, building energy use, and clean fuel production. For additional details on these OBBBA reforms, see Table 5 in CRS Report R48611, Tax Provisions in PL. 119-21, the FY2025 Reconciliation Law. Clean or Renewable Electricity Generation Prior to the enactment of the IRA, the two largest tax credits for renewable electricity generation were the Production Tax Credit (PTC) and the Investment Tax Credit (ITC). The pre-IRA PTC provided 1.3-2.5 cents per kilowatt-hour of electricity generated by renewable power plants beginning construction before 2022. The ITC subsidized 30% of the capital investment costs of building renewable power plants beginning construction before 2024. The IRA extended both of these beginning of construction deadlines to January 1, 2025, made additional technologies eligible for the credits, and added bonus amounts that made the credits more generous. The IRA created two broadly similar successor credits, the Clean Electricity Production Tax Credit (CEPTC) and the Clean Electricity Investment Tax Credit (CEITC) for power plants beginning to produce electricity in 2025 or later years. All forms of zero-emissions electricity, including nuclear power and most renewables, were eligible for the credits. The IRA also created the Zero-Emission Nuclear Power Production Credit, which subsidized electricity production from nuclear facilities that existed prior to the passage of the IRA. Finally, the IRA expanded the preexisting Credit for Carbon Oxide Sequestration, which may be claimed by power plant owners, industrial producers, and other businesses that capture their carbon oxide Congressional Research Service https://crsreports.congress.gov IN12624 CRS INSIGHT Prepared for Members and Committees of Congress