WASHINGTON DC (04/24/2025) – Today, the Institute for Energy Research (IER) released a new report, Revenue Estimates for Repealing the Clean Vehicle Tax Credits (30D, 25E, and 45W), outlining how repealing the Inflation Reduction Act’s (IRA) EV subsidies will save taxpayers approximately $300 billion from 2026 to 2035. The report was produced for IER by EY Quantitative Economics and Statistics.
IER President Thomas Pyle issued the following statement:
“The Inflation Reduction Act has ballooned into one of the biggest government boondoggles in history. Originally estimated to cost taxpayers $370 billion in energy-related subsidies, new projections paint a much more alarming picture. Goldman Sachs pegged the true cost of the entire IRA at $1.2 trillion, while the Cato Institute now estimates the budgetary cost of the Inflation Reduction Act’s energy subsidies could soar to nearly $2 trillion over the next ten years—five times the original estimate. A significant amount of this explosion in spending comes from runaway tax credits for electric vehicles, $300 billion alone, which overwhelmingly benefits higher-income households at the expense of working-class Americans.
“Reinstating the pre-IRA tax credit structure will recover roughly $300 billion in federal revenue between 2026 and 2035. That’s real money that could be returned to taxpayers, fueling private-sector innovation, job creation, and consumer-driven growth instead of funneling taxpayer dollars into a narrow, government-directed vision of the economy.
“Not a single Republican supported the IRA. This new analysis is a wake-up call—and a roadmap. It’s time for Congressional Republicans to use reconciliation to repeal the IRA and deliver on their promise to prevent future tax increases, reduce inflationary pressures, and put economic power back in the hands of American families.”
IER Experts Available For Interview On This Topic:
- Tom J. Pyle, President
- Daniel Kish, Senior Vice President of Policy
- Kenny Stein, Vice President of Policy
- Alexander Stevens, Manager of Policy and Communications
Additional Background Resources From IER:
- Revenue Estimates for Repealing Clean Vehicle Tax Credits (30D, 25E, and 45W)
- Reversing IRA Subsidies Will Save Taxpayers Bundles
- Slash It: The IRA
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For media inquiries, please contact THOMAS.PYLE@IERDC.ORG
