The United States House of Representatives recently passed H.R. 1, a budget bill that proposes to repeal or modify crucial clean energy programs and rescind funds allocated by the Inflation Reduction Act (IRA). This development has significant implications for the clean energy sector and, by extension, various industries, including the glass and glazing industry, which has begun to leverage the IRA’s incentives.
The Inflation Reduction Act, enacted in 2022, has been a cornerstone of federal efforts to accelerate the transition to a cleaner energy economy. It has provided substantial tax incentives and funding for a wide array of clean energy initiatives. For the glass and glazing industry, the IRA has offered tangible benefits, such as tax credits for electrochromic glass, substantial appropriations to support the adoption of energy-efficient building codes at state and local levels, and billions in grants for retrofitting and upgrading building efficiency technologies.
Beyond specific industry benefits, the IRA has also spurred programs focused on building decarbonization, exemplified by initiatives like the United States General Services Administration’s Green Proving Ground program. Since its inception, the IRA has directed over $90 billion towards clean energy technologies and building sector improvements, with nearly $50 million already disbursed to projects aimed at decarbonizing buildings.
H.R. 1, in its current form, targets several key provisions of the IRA. Notably, it seeks to terminate the Section 45Y Clean Energy Production Credit and the Section 48E Clean Electricity Investment Credit for facilities not commencing construction within 60 days of the bill’s enactment or placed in service after the end of 2028. Other IRA provisions under threat include the Greenhouse Gas Reduction Fund, the High-Efficiency Electric Home Rebate Program, State-Based Home Efficiency Contractor Training Grants, and various Clean Energy Production Tax Credits. 
The potential ramifications of H.R. 1 are significant. Analysis from Princeton University estimates that repealing current federal energy and climate policies could lead to an annual increase of approximately 0.5 billion metric tons in U.S. greenhouse gas emissions by 2030, escalating to over 1 billion metric tons by 2035. Economically, a repeal could translate to an annual increase in U.S. household and business energy expenditures of $25 billion by 2030, potentially exceeding $50 billion by 2035. This would also burden average U.S. households with increased energy costs, ranging from roughly $100 to $160 per year in 2030 and approximately $270 to $415 per year in 2035. Furthermore, such a repeal could jeopardize a substantial $522 billion in pending investments in U.S. clean energy supply and manufacturing.
The legislative move to target clean energy tax credits stems from ongoing political arguments that the costs associated with the IRA’s energy and climate provisions are deemed unnecessary, burdensome, expensive, and contribute to the national deficit.
H.R. 1 has now advanced to the Senate for consideration, where its fate will have profound implications for the future of clean energy development and related industries in the United States.
Source: Princeton University with additional information added by GlassBalkan
