Trump Allies Benefit from Biden's Climate Subsidies

This Oct. 25 story has been corrected to fix comment from Trump’s spokesman to clarify that he did not tell Reuters that a broad rollback of the IRA was a top priority, in paragraph 11.

By Valerie Volcovici and Gram Slattery

WASHINGTON (Reuters) – Donald Trump has promised to gut U.S. President Joe Biden's climate subsidies if elected. However, many of Trump's allies are benefiting from those subsidies due to substantial investments in solar power, electric vehicles, carbon sequestration, hydrogen, and other clean energy technologies.

Reuters identified at least seven of Trump's close allies and fundraisers, or the firms they oversee, holding hundreds of millions of dollars in stakes in companies significantly benefiting from the tax breaks in the Inflation Reduction Act, Biden's signature climate law.

These figures include Trump's son-in-law Jared Kushner; former ambassador to China Terry Branstad; and companies managed by oil mogul Harold Hamm and financier Howard Lutnick. Major oil companies like Occidental Petroleum and Energy Transfer, whose CEOs hosted fundraisers for Trump, also have substantial investments in projects reliant on Biden's clean energy tax credits.

Tesla, led by CEO Elon Musk, is another major beneficiary from the IRA’s electric vehicle and solar credits. Collectively, these individuals and companies hold billions of dollars in investments that qualify for the IRA’s lucrative tax benefits and stand to lose significantly if Trump fulfills his pledge to dismantle Biden’s climate law.

These investments might encourage some allies of Trump to advocate for the preservation of specific IRA components if he wins against Democratic Vice President Kamala Harris in the upcoming election. Such advocacy could add influential voices to those already supporting certain IRA subsidies.

None of the individuals or companies identified by Reuters were willing to comment on whether they would seek to maintain parts of the IRA. Nonetheless, Trump’s intentions are explicit. He stated, "My plan will terminate the Green New Deal, which I call the Green New Scam, and rescind all unspent funds under the misnamed Inflation Reduction Act."

A Trump campaign senior adviser expressed that the IRA has contributed to inflation and increased the federal deficit but did not elaborate on how Trump would address the IRA if re-elected. Revoking any IRA components would require congressional approval.

A group of 18 Republican legislators from districts benefiting from IRA-linked investments wrote to House Speaker Mike Johnson in August urging caution against wholly revoking the IRA if they gain control of Congress.

The White House claims the IRA created more than 330,000 jobs and that dismantling it would adversely affect investments in Republican-led states. The administration noted that substantial investment is taking place in red and purple states.

The Biden administration has distributed most IRA grants, but tax credits will continue for years. Other clean energy investors hope Trump's campaign remarks will transition into more pragmatic policies if he becomes president. They emphasize the need for policy stability, stressing significant investments depend on the IRA.

Allies with IRA Benefits

• Mosaic: Jared Kushner's Affinity Partners invested $200 million in Mosaic, a solar financing company benefiting from the 30% tax credit for residential solar.

• Summit Carbon Solutions: Harold Hamm's Continental Resources invested $250 million in this carbon capture project, relying on enhanced tax credits under the IRA.

• Tesla: Continues to prosper from IRA tax credits despite CEO Musk's past criticism of subsidies, viewing it as a boost for their mission.

• Occidental Petroleum: CEO Vicki Hollub supports the 45Q carbon capture tax credit, emphasizing its potential for significant technological development.

• Energy Transfer: The pipeline operator engages in projects supported by IRA tax credits, including CCS and hydrogen hubs.

• Cantor Fitzgerald: CEO Howard Lutnick's firm has heavily invested in companies benefiting from the IRA, including renewable energy giant Invenergy.

Overall, these individuals and companies are crucial to the dialogue around the future of the IRA and its beneficial tax credits.