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Liam Denning and Bobby Ghosh

Republicans Will Take Home the Money From the Democrats’ Energy Bill

The biggest beneficiary of the legislation might come as a shock to climate advocates and fossil fuel titans alike.

Kevin McCarthy, the new poster child for green energy spending?

Kevin McCarthy, the new poster child for green energy spending?

Photographer: Al Drago/Bloomberg

Through that alchemy peculiar to Washington DC, Build Back Better became the Inflation Reduction Act. But the climate-related core of the landmark legislation passed in the Senate this weekend — now awaiting a House vote — remains building.

President Joe Biden’s flagship economic package extends tax credits for new wind and solar generation (as well as battery storage and geothermal projects). There are also incentives for domestic manufacturers to build the equipment for those projects, as well as mining the minerals and making the components that go into battery-powered electric vehicles. Beyond accelerating the construction of energy assets, this represents an effort to catch up with Chinese industrial policy and encourage building an entire value chain for US-made clean technology.