Full Title: Hedging Natural Gas Shocks: How Gutting the IRA Risks Prolonging Electricity Price Pain
Author(s): Skanda Amarnath & Arnab Datta
Publisher(s): Employ America
Publication Date: June 12, 2025
Full Text: Download Resource
Description (excerpt):
Congress is considering raising the tax burden on electricity investment and production supported through tax credit ( ITC & PTC) enacted in the Inflation Reduction Act of 2022 (IRA). These provisions support building generation capacity across a range of sources, including nuclear, geothermal, energy storage, wind, solar, and hydro, thereby diversifying a sector currently led by natural gas. Part of the justification for the ITC & PTC was the additional development and returns to scale that could be unlocked from otherwise underinvested sources and technologies.