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In order to make the US federal government , sometimes the 鈥渟calpel鈥� rather than the 鈥渉atchet鈥� is the right tool for the job. The same approach should go for Congressional Republicans considering repealing parts of the Inflation Reduction Act (IRA) to fund key White House priorities like the extension of the 2017 Trump administration tax cuts. Thankfully, many members favor a scalpel approach. Earlier this month, 21 Republicans sent a letter to Ways and Means Committee Chairman Jason Smith voicing support for energy tax credits included in the 2022 law necessary for 鈥渕ajor investments in domestic energy production and infrastructure for traditional and renewable energy sources alike.鈥� 

As lawmakers work with the Trump White House to craft a tax package to pass via reconciliation this year, they should stick closely to a tailored approach that extends certain tax credits supporting cleaner energy. This is a sound strategy that鈥檚 likely to appeal to US President Donald Trump's energy policymakers as well as inject new private sector investment in the domestic economy.

The IRA provided an unprecedented amount of funding for climate and energy initiatives 鈥� to the tune of $369 billion. But while the bill advanced some of former US President Joe Biden鈥檚 highest policy priorities around electric vehicles and renewables, other tax provisions negotiated into the final law also support responsible oil and gas development.

The law included more than 70 investment, excise and production tax credits, many of which focus on advanced manufacturing, innovative technologies, and alternative fuels that this administration has championed in the past. For example, carbon capture investments led by private capital had support in Trump's first term, particularly when paired with hydrogen production.

Maintaining this approach sends a crucial signal to energy companies: We will let companies innovate and meet the needs of Americans.

Protecting Investments

Additionally, removing these provisions and tax credits might put at risk key investments and projects across the US that are already contributing jobs and community revenues, particularly in Republican-leaning districts. In fact, the letter signed by 21 Republicans stressed this very point. Many US companies are already using sector-wide energy tax credits, including existing and planned carbon capture and sequestration (CCS) facilities amounting to $60 billion in investments. Prematurely repealing energy tax credits, particularly those that were used to justify investments that have already broken ground, would undermine private investments, erase jobs and stop development that is already ongoing.

Finally, retaining some of the IRA鈥檚 tax credits offers a once-in-a-generation opportunity to advance new technologies that will help us meet rising energy demand and while lowering carbon dioxide emissions. These credits will drive transformative investments across the US energy sector into a cleaner system. So not picking winners and losers but instead incentivizing a lower carbon footprint. Republicans can preserve these policy measures while eliminating subsidies for technologies that do not need them to be competitive in the market, such as wind and solar.

CCS and Hydrogen Opportunities

Along these lines, one crucial pair of energy credits to preserve from the IRA is the 45Q Carbon Sequestration Credit and the . While some Biden administration officials criticized these projects for not doing enough to wean the country off of fossil fuels, the Trump administration has a chance to double down on the world-leading US position in CCS deployment, boasting about 80% of the world鈥檚 CO2 capture capacity.

Paired with tax credits for hydrogen projects, CCS can capture and store the CO2 emissions generated during the hydrogen production process, thus reducing the carbon footprint. Hydrogen derived from natural gas is among the most promising in terms of both energy production and job creation. In fact, industry estimates suggest that if these credits persist and technology remains unencumbered by regulation, by 2030 the US hydrogen economy could support 700,000 jobs and over $140 billion in economic benefits.

The growing number of Republicans who have been openly supportive of a more tactical approach to cutting up this law is telling. To preserve US jobs, protect private sector investments and secure US energy strength for another generation, the White House should fiercely defend the kinds of policy tools that are already on the books.

Guy Caruso is a former administrator of the US Energy Information Administration and a Center for Strategic and International Studies senior adviser in the Energy Security and Climate Change Program. The views expressed in this article are those of the author.