GOP budget plan aims to phase out electric vehicle and renewable energy incentives, repeal key Inflation Reduction Act programs, and roll back EPA climate rules.

Republicans are trying to pass a multi-trillion-dollar budget that aligns with President Donald Trump's agenda, and lawmakers in the US House revealed plans to reduce expenditure on electric vehicles and renewable energy, phase out clean energy tax incentives, and recover other climate-related funds.

Removing the climate-related parts of the enormous "Inflation Reduction Act legislation" passed by the Biden administration would raise $6.5 billion. The proposal, which will be put to a vote on Tuesday, was proposed by the committee of the House on Energy and Commerce.

The House Ways and Means group recommended in a memo issued on May 12th that several lucrative tax credits from Joe Biden's former President's landmark climate law be removed or canceled. These include a tax credit for home energy efficiency improvements and a consumer-facing credit for electric vehicle purchases. The panel also recommended that several significant clean energy subsidies be phased out before they expire in 2031.

Trump ran on a platform of reducing government funding for EVs and reversing Biden's massive global warming programs, which he said were useless and hurt drillers, automakers, and miners. He also expects that his first budget since assuming office would live up to his promises to cut back on bureaucratic red tape.

The technology-neutral 45Y tax credits for wind, solar, and other clean energy sources—including Republican-favored technologies like nuclear and geothermal—will be quickly phased out as part of the House tax panel's planned cuts.