Experts React: Energy Policy in the Reconciliation Debate

In brief

CSIS experts react to the House budget reconciliation bills released in May 2025, which proposed major changes to U.S. energy subsidies and clean energy incentives. In her section, “Cost of Capital and Supply Chains in a Post-IRA Market,” Arushi examines how the proposed tax credit changes would add financial pressure on small and mid-sized manufacturers, including in batteries, and how ending tax credit transferability would remove a tool these firms use to manage financial risk. She also points to the consolidation and repositioning the uncertainty could bring.

Key points

1. 01Her section: the cost of capital and supply chains in a post-IRA market.
2. 02Ending tax credit transferability takes away a risk tool that smaller manufacturers rely on.
3. 03Uncertainty could drive consolidation and repositioning among capital-constrained domestic manufacturers.