The U.S. utility industry is advocating for the preservation of clean energy and electric vehicle (EV) tax credits under the Inflation Reduction Act (IRA) as the incoming Trump administration signals potential rollbacks. Pedro Pizarro, CEO of Edison International, underscored the importance of the IRA at the COP29 climate summit, stating that maintaining the legislation would benefit businesses and consumers alike.
“One of our big priorities as an industry is going to be to articulate the benefits of the IRA,” Pizarro told Reuters. He highlighted that most benefits “donāt actually accrue to our shareholders. They go straight to our bills and down to our customers.” The IRA, signed into law in 2022, provides substantial subsidies for clean energy, but President-elect Donald Trump has pledged to rescind the law, a move requiring congressional backing.
The Trump transition team has reportedly begun drafting plans to eliminate the $7,500 EV tax credit as part of broader tax reform. Industry groups, including representatives from Tesla, Rivian, and Panasonic, have cautioned against such measures, citing potential negative impacts on Republican-led states.
For members of the Edison Electric Institute (EEI), which represents utilities like AES, Duke Energy, and Southern Company, retaining tax incentives for clean energy technologies is essential. “Itās really across the board,” Pizarro said, adding that EEI members will focus on engaging lawmakers to demonstrate how the IRA supports growth and reduces customer costs. “Weāll be very active there, just explaining the benefits of the IRA,” he emphasized.
