Article Summary –
Two right-leaning industry groups, the American Petroleum Institute and the U.S. Chamber of Commerce, have shown support for parts of President Biden’s Inflation Reduction Act, specifically the tax incentives for clean energy. Initially against the Act due to corporate tax hikes and a methane emissions fee, the inclusion of billions in tax credits for clean energy technologies has caused a shift in their stance. The groups, which represent industries including oil, gas, and various forms of energy and business, are expected to lobby to defend these provisions, especially if Donald Trump is re-elected.
Inflation Reduction Act Finds Unlikely Support
President Joe Biden’s Inflation Reduction Act (IRA) initially faced resistance from conservatives. However, two right-leaning industry groups, the American Petroleum Institute (API) and the U.S. Chamber of Commerce, have vocalized support for certain provisions of the act in anticipation of a potential Donald Trump presidency come November.
Impact on the Energy Sector
The API, a significant oil lobby in Washington, and the Chamber of Commerce, which represents big businesses, have stated they will work to maintain parts of the law, according to Kelsey Bruggers, a reporter covering energy and climate politics. These industry heavyweights represent a variety of sectors including energy, clean energy, fossil fuels, and development.
A Shift in Stance
Initially opposing the IRA due to corporate tax hikes and a methane emissions fee, these groups’ partial shift in stance seems largely due to the act’s significant tax credits for clean energy. The IRA contains hundreds of billions in tax credits for clean energy technologies such as hydropower and carbon capture. With these substantial economic incentives, a number of oil companies are beginning to invest in clean energy technologies.
Future Strategy and Impact
While the future remains uncertain, it’s clear that with the potential for substantial tax breaks, big businesses may pursue defense strategies to conserve the act. Specific provisions relating to investments in clean energy are particularly appealing to the API and the U.S. Chamber of Commerce. Traditional fossil fuel industries are increasingly interested in the clean energy market, creating potential for unlikely alliances in support of the IRA.
Defending the IRA Post-Election
Should Trump regain presidency, a lobbying campaign on Capitol Hill may be expected from these groups, despite Republican efforts to eradicate Biden’s climate policies. Existing divisions within the Republican Party may be exacerbated due to the IRA’s biofuel subsidies, wherein regional interests may conflict with party lines. Trade groups, not limited to the API and the U.S. Chamber of Commerce, are likely to be involved in lobbying efforts, advocating for the benefits these subsidies could bring to their members.
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