Republican lawmakers sparked controversy last week by proposing deep cuts to federal subsidies for wind, solar, electric vehicles—and nuclear energy. The move, aimed at scaling back provisions in President Biden’s Inflation Reduction Act (IRA), has drawn strong opposition from across the clean energy sector.
The House Committee on Energy and Commerce introduced the proposal on Monday, suggesting a phaseout of tax credits tied to climate policies. According to the committee, these changes would generate $6.5 billion in savings. The House Ways and Means Committee also recommended ending tax incentives that currently support renewable energy, electric vehicles, and other clean technologies.
The wind and solar industries, which have spent months lobbying lawmakers—especially those in districts benefiting from IRA subsidies—warn that the cuts could lead to job losses and harm American families. But they are not alone in pushing back.
The nuclear industry, long overshadowed in clean energy debates, has also launched a strong lobbying campaign to preserve federal support. According to the Financial Times, firms like Oklo, backed by OpenAI CEO Sam Altman, increased their lobbying budgets by 500% this year to $424,000. Constellation Energy, which partnered with Microsoft to restart the Three Mile Island plant, spent over $1.7 million in the first quarter—up 17% from last year.
The renewed interest in nuclear power is driven in part by surging electricity demand from artificial intelligence and data centers. Tech giants like Google, Amazon, and Meta are investing heavily in nuclear technology, including small modular reactors (SMRs), to secure long-term energy supplies.
These projects are costly upfront, making tax incentives such as the investment tax credit and production tax credit critical for their development. “It’s hard to overstate the value of the tax credits on helping to de-risk early-stage capital,” said Oklo CEO Jacob DeWitte. “If the idea is to lead and dominate in this space, we need to use all the tools in the tool belt.”
There may be a lifeline for nuclear in the Senate. While some Republican senators support cutting wind and solar subsidies, they are more cautious about pulling support from nuclear. Senator Kevin Cramer of North Dakota, for example, has suggested removing incentives for mature technologies like wind and solar while preserving those for emerging options like SMRs. “I don’t think it’s fair to treat an emerging technology the same as a 30-year-old technology,” he told Politico.
However, not all nuclear companies are worried. Some even welcome a move away from federal support. “Industries that rely on federal subsidies tend to get stuck in ruts,” said Isaiah Taylor, CEO of Valar Atomics. “I like the direction the administration is taking—keeping it private and faster.”
As Congress debates the “One Big, Beautiful Bill,” clean energy sectors remain divided in their dependence on federal aid. While wind and solar may struggle to adapt without subsidies, the nuclear industry sees an opportunity to prove its strength in the free market—even if not all players agree on the path forward.
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