Last week, the House Ways and Means Committee advanced legislation seeking to eliminate some of the credits, including for clean electricity investment and production, following a similar Republican effort during debt limit negotiations.
GOP attempts to repeal the tax credits are going nowhere for now, with President Biden in the White House and a Democratic majority in the Senate.
But with Biden suffering from lower approval ratings and races for majorities in the House and Senate expected to be highly competitive next fall, the sector is worried they could be axed in the future if the political winds blow in the Republicans' direction.
An industry source told The Hill the uncertainty about the future "doesn't help" but said they wouldn't go as far as to say that it's killing activity.
"It kind of creates doubt," the source said, noting that it could ultimately slow some processes down as projects seek funding.
Christopher Knittel, a professor of applied economics at MIT, said, "It definitely creates uncertainty in the market and is bad for both Democratic and Republican jurisdictions around the U.S."
Knittel said the impacts will likely be limited to projects "on the margin" — the kind that would only be profitable with the subsidies.
Some are skeptical of the idea that the credits are being stifled.
"Broadly speaking, those who follow the policy world closely … recognize that this is not likely to move forward, that these are not efforts that are going to deter investment," said Gregory Wetstone, president and CEO of the American Council on Renewable Energy.
Read more in a full report at TheHill.com.
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