Most of the green energy tax benefits provided by President Joe Biden’s $750 billion Inflation Reduction Act (IRA) of 2022 are going into the coffers of big banks and billion-dollar corporations, according to House Ways and Means Committee Chairman Jason Smith (R-Mo.).
Smith was referring to the Biden administration’s controversial plan to double the size of the IRS’s workforce by adding 87,000 new tax investigators and auditors. House Republicans want to defund the IRS expansion plan.
“Many of the same companies getting a green corporate welfare check have shed their American identity to do business with the Chinese Communist Party (CCP), and, as a result, our tax dollars are being funneled to Chinese entities that manipulate our key supply chains,” Smith said.
“While House Republicans are fighting for working families struggling to pay their gasoline and utility bills, House Democrats are prioritizing foreign nations and sending as many taxpayer-funded handouts to corporations as possible. With big banks pocketing three times more of these special interest tax breaks than any other industry, it’s clear Democrats are rewarding their friends on Wall Street that push their partisan ESG [environmental, social, and governance] agenda.”
The JCT has members from both the Senate and House of Representatives, and the chairmanship and vice chairmanship alternate between the two chambers from one Congress to the next. Smith is this year’s chairman, and Sen. Ron Wyden (D-Ore.), the most senior senator on the panel and its ranking Democrat, is vice chairman.
But 7 1/2 months after that ceremony, among the major findings of the JCT analysis are that firms with more than $1 billion in sales are set to receive more than 90 percent of the green energy tax subsidies provided by the IRA, and large banks and insurers receive in excess of 50 percent of the green energy tax breaks, far more than any other industry or sector, according to Smith, a Republican from Missouri.
The JCT analysis focuses mainly on two green energy tax credit categories: the Electricity Production Tax Credits and the Electricity Investment Tax Credits. The analysis found that 97 percent of credits in the former category go to corporations valued at $1 billion or more, and 92 percent of those in the latter go to large banks and insurance firms.
Democrats Argue Benefits Are Needed
“The climate crisis is real, and its effects are only becoming more extreme. In California, all but one of the state’s ten largest wildfires in history have occurred since 2017, and years of severe drought have now been followed by months of extreme rain and snow. Democrats did something about this, and we made sure that the clean energy transition will mean more jobs, more manufacturing, and higher wages here in the United States,” Chu said at the hearing.“The Inflation Reduction Act is the single largest clean energy investment in U.S. history. With first-of-their-kind requirements to strengthen American supply chains and create quality, high-paying jobs, this legislation is proving that green jobs are good jobs, and putting the country on a path to responsible, sustainable energy independence.
“So far, the green tax credits have spurred over 100,000 jobs for U.S. electricians, mechanics, construction workers, technicians, support staff, and others. Just in the law’s first six months, 90 new clean energy projects have been announced in 31 states. These projects include battery manufacturing, electric vehicle manufacturing, and wind and solar manufacturing sites. If that isn’t delivering results for the American people, then what is.”
During the hearing, Republicans also criticized the IRA for providing revenue streams that benefit the CCP.
Rep. Darin LaHood (R-Ill.), who also serves on the House Permanent Select Committee on Intelligence and the House Select Committee on Strategic Competition Between the United States and the Chinese Communist Party, said at the hearing:
CCP Misuses US Resources
GreenMet CEO Drew Horn, who testified during the hearing, responded to LaHood.“We have to be careful that, as we look at driving catalysts to drive U.S. industry and U.S. innovation, that we don’t open ourselves to a Trojan Horse to come in a work against us. The CCP is an expert at doing this, they know exactly how to exploit what we do, they’ve been doing it for decades, and their plan is to suppress us and prevent us from being a competitor to their world domination.”
He said that there are U.S. firms very close to being in a position to compete strongly against the CCP in acquiring and using rare earth minerals that are required for electric vehicle batteries and other green energy applications.
“They are a threat to [China’s goal of] global hegemony and the monopoly that the CCP has on the industry, and they will do everything possible to prevent those options from coming online, from price fluctuations, flooding the market, everything measurable,” Horn stated.
“So when the resources designed to go to U.S. companies to allow them to compete on a fair stage with the Chinese Communist Party are diverted, it allows the CCP not only to take those funds but to suppress any possible legitimate competition for a better service provided.”
Currently, 84 percent of the world’s rare earth minerals are mined and produced outside of North America, with a vast majority of that activity under the control—directly or indirectly—of the CCP.
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