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inflation reduction act
Big Oil Doesn't Just Want to Get Rich Wrecking the Climate—They Want Lower Taxes Too
"If this polluter handout is snuck into the GOP tax bill, then cuts to Medicaid and food stamps could well pay for another giveaway to Big Oil," said the co-author of a new report. "That's obscene."
Mar 24, 2025
Having helped install the most fossil fuel-friendly administration of the climate awareness era, Big Oil and their Republican boosters in Congress are now setting their sights on undermining a tax enacted by during the tenure of former President Joe Biden as part of the landmark Inflation Reduction Act.
Alan Zibel, research director at the consumer advocacy watchdog Public Citizen, and Lukas Shankar-Ross, deputy director of Friends of the Earth's Climate and Energy Justice Program, noted in a report published Monday that Sen. James Lankford (R-Okla.), who chairs the Senate Ethics Committee, earlier this year introduced industry-backed legislation, the Promoting Domestic Energy Production Act, for possible inclusion in Republicans' proposed $4.5 trillion tax giveaway to corporations and the ultrawealthy.
As Common Dreamsreported in January, the fossil fuel industry spent an estimated $445 million during the 2024 election cycle to elect President Donald Trump and other GOP candidates who serve their climate-wrecking interests, and it expects much in return.
"Domestic oil and gas companies, including from Lankford's home state of Oklahoma, have warned their investors about the corporate alternative minimum tax," Zibel and Shankar-Ross wrote. "The industry could soon be rewarded with specially tailored tax relief courtesy of their Republican political allies."
As the report explains:
Here's how the tax scheme works: In August 2022, President Joe Biden signed the Inflation Reduction Act, which made historic climate investments. To help pay for new spending, the bill included a set of corporate tax increases, the largest of which was the $222 billion corporate alternative minimum tax. This tax is meant to prevent corporations that deliver massive profits to investors from paying nothing or nearly nothing in taxes because of corporate-friendly tax loopholes. Under the corporate minimum tax, if a company reports an average of at least $1 billion in annual income over three years, then it must pay 15% of that reported income in taxes, minus certain deductions.
The report highlights Republican efforts to eliminate the minimum tax, including via legislation introduced by Sen. John Barrasso (R-Wyo.) and endorsed by the American Petroleum Institute, U.S. Chamber of Commerce, National Association of Manufacturers, National Mining Association, Western Energy Alliance, and industry lobbyists.
The bill introduced by Lankford would enable fossil fuel companies to skirt the minimum tax by allowing them to deduct "intangible" drilling costs, a tactic used as an effective subsidy for more than 120 years. Zibel and Shankar-Ross described the tax dodge as "the oldest and the largest fossil fuel subsidy on the books," and one which "allows all of the costs for drilling an oil or gas well to be deducted immediately in the year they are incurred."
"If individual taxpayers understood the magnitude of the extreme subsidies for Big Oil, they would be shocked."
"It is simply outrageous that the GOP is using its trifecta to create yet another fossil fuel subsidy," Shankar-Ross said in a statement, referring to Republicans' control of the White House and both chambers of Congress. "If this polluter handout is snuck into the GOP tax bill, then cuts to Medicaid and food stamps could well pay for another giveaway to Big Oil. That's obscene."
Zibel asserted that "oil and gas companies are using the political influence they purchased to dodge paying even a minimal part of their fair share."
"If individual taxpayers understood the magnitude of the extreme subsidies for Big Oil, they would be shocked," he added. "The newest effort to bypass even the most modest of tax bills by the industry is shocking, but sadly not surprising."
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Trump EPA and Citibank Sued for 'Illegally' Freezing Green Energy Funds
"This program was designed to save money for hard-working Americans who are struggling to pay for groceries and keep the lights on," said the head of a climate group that had been awarded funds to finance green energy expansion.
Mar 10, 2025
The need for a federal lawsuit filed Monday presents "more evidence of a constitutional crisis," according to one campaigner, as plaintiffs pushed back against the Trump administration's unlawful freezing of funds appropriated by Congress to help fuel a green energy transition in marginalized communities nationwide.
The lawsuit was announced Saturday by Climate United Fund, a nonprofit green investment fund, and was received Monday by U.S. District Judge Tanya Chutkan, who previously presided over President Donald Trump's criminal trial regarding his alleged attempts to overturn the 2020 election.
The group is accusing the Environmental Protection Agency and Citibank of "illegally withholding" $7 billion that had been awarded to Climate United through the Inflation Reduction Act (IRA), which set up a $20 billion Greenhouse Gas Reduction Fund, also known as the Green Bank.
The Green Bank was established to fund solar power, energy-efficient housing projects, and electric vehicles. Climate United has reported that it used funds to begin pre-construction on a solar energy project across the University of Arkansas system, invest in electric trucks at the ports of Los Angeles and Long Beach with plans for nationwide expansion, and launch a grant program for low-income communities to start clean energy projects.
For the last two weeks, The New York Times reported, Climate United and seven other nonprofits that were awarded funding through the Green Bank have been unable to withdraw the money from their accounts at Citibank.
"They have essentially acted as if they control the power of the purse, but very clearly written into the Constitution is the separation of powers that grants Congress and Congress alone the power of making funding decisions."
The Times reported that the EPA appeared to have frozen the funds after EPA Administrator Lee Zeldin called for a "termination" of the agreement the Biden administration made with Citibank when the money was allocated to the nonprofits.
Zeldin made that demand last month after the right-wing group Project Veritas, released a hidden-camera video in which it had surreptitiously recorded an EPA employee saying before Trump took office that the agency was attempting to spend federal money on climate programs before the Republican president was inaugurated.
Zeldin suggested the comments signaled the Green Bank was "designed to obligate all of the money in a rush job with reduced oversight" and was "irresponsibly shoveling boat loads of cash to far-left, activist groups in the name of environmental justice and climate equity."
Climate United and the other groups impacted by the funding freeze have been struggling to pay their staff, the Times reported.
"This isn't about politics; it's about economics," said Beth Bafford, CEO of Climate United. "This program was designed to save money for hard-working Americans who are struggling to pay for groceries and keep the lights on. We're going to court for the communities we serve—not because we want to, but because we have to."
In his statement about the Green Bank funding last month, Zeldin said he was referring the matter to the Office of the Inspector General, suggesting an accusation of potential fraud.
Days after Zeldin's directive, federal prosecutor Denise Cheung resigned after declining to freeze an unidentified bank's accounts for a government contractor, saying she had not found "sufficient evidence" of criminal activity. Cheung's resignation is believed to have stemmed from Zeldin's accusations regarding the Greenhouse Gas Reduction Fund.
In an interview with "Living on Earth" on Public Radio Exchange last month, Jillian Blanchard, vice president of climate change and environmental justice at Lawyers for Good Government, said Zeldin's push to claw back $20 billion that was awarded last year through legislation passed by Congress suggests that "this executive [branch] seems to believe that they have and should have more power than both Congress and the courts."
"They have essentially acted as if they control the power of the purse, but very clearly written into the Constitution is the separation of powers that grants Congress and Congress alone the power of making funding decisions," said Blanchard.
The Trump administration has already been blocked from freezing funds that were were appropriated by Congress. In January the president moved to block federal grants and loans in an order that was swiftly blocked by federal courts, with one judge saying the funding freeze was "likely unconstitutional."
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We Can Accelerate the Clean Energy Transition, Even Under Trump
The momentum toward a sustainable future will be unstoppable if clean energy supporters speak up in their own communities.
Feb 23, 2025
Here's a bold prediction for the start of the second Trump administration: The next four years will be the best yet for America's clean energy transition.
That may sound surprising, given the significant steps President Donald Trump has already taken to try to reverse American leadership on climate and clean energy. There's much still unknown about the potential impact of Trump's early executive orders, but one truth remains clear: Far from slowing down, we could be entering a period of unprecedented renewable energy progress.
There's already strong momentum behind the clean energy shift, and whether that momentum continues is less dependent on the federal government than you might think. Trump can't change the reality that, for a huge number of clean energy projects, the permitting authority rests not with federal agencies, but with state and local decision-makers.
Now more than ever, speaking up for clean energy in your community is one of the most impactful steps you can take for the planet, your local economy, and the health and safety of future generations.
This means that the main determinant of how much progress clean energy makes over the next four years isn't the Trump administration. It's your neighbors—and you.
Don't be distracted by all the ink that will be spilled in the coming months about Trump's efforts to slow progress on offshore wind and electric vehicles, or to roll back the Inflation Reduction Act (IRA). For starters, experts agree that a full repeal of the IRA—which made the single largest investment in climate and energy in American history—is unlikely. This landmark law has been an economic boon to red and blue states alike, earning bipartisan support.
The way forward remains open for the vast majority of clean energy projects permitted mostly or entirely at the state and local level. There, local governments, influenced by support across the political spectrum, have become powerful engines of clean energy progress.
Solar and wind are now the cheapest energy options available, even without subsidies. Across the country, these technologies are increasingly boosting local economies, generating revenue for public services, creating well-paying jobs, and delivering health and climate benefits for millions.
Now, our often-overlooked town planning and zoning commissions or county councils hold the key to driving clean energy forward in the coming years. Right now, these spaces are often dominated by small numbers of highly organized opponents—many backed by the same fossil fuel-linked interests that are now shaping Trump's energy policy. Left unchecked, these opponents have become adept at stalling or derailing clean energy progress. As of early 2024, at least 15% of U.S. counties had effectively banned utility-scale wind or solar projects, despite the fact that the vast majority of Americans support these technologies.
Here's the opportunity. With so few people in attendance at local hearings, noisy opponents can significantly influence local decision-makers. That also means every person who makes the choice to speak out in favor of clean energy projects can make a big difference.
Take Mesa County, Colorado, where volunteers with the Western Colorado Alliance came together to overturn a moratorium on solar development in spring 2024. The handful of volunteers who took the time to show up to the pivotal public hearing helped ensure that community support for solar growth was on clear display, outweighing the opposition and convincing local officials to lift the county's ban.
This small group of volunteers helped create jobs, improved health, made their grid more reliable, and had a bigger impact for the climate in one step, together, than through years of individual actions. Even one 500-megawatt solar array that gets built as a result will help avoid the carbon emissions of more than 80,000 people switching to electric vehicles.
With a focus on supporting more of these projects in communities nationwide, clean energy will continue to boom in Trump's second term and beyond, creating a more livable climate and stronger economy for all.
So how do you take action where you live? It's easier than you think—here's a guide to getting started. Visit your city, county, or town's website and see what's on the planning docket. Check your local media for news about clean energy. And when you hear about a proposed project, don't just assume it will happen—or that it will fail. Do your research, share what you learn with neighbors, and reach out to organizations like the one I founded, Greenlight America, for help.
Most importantly, follow the project's approval process and, when it's up for a vote, be there or write in to voice your support to local leaders. They say 90% of success in life is showing up. For clean energy permitting, it's more like 100%.
Now more than ever, speaking up for clean energy in your community is one of the most impactful steps you can take for the planet, your local economy, and the health and safety of future generations.
There will be hundreds of opportunities to make this impact across the country in the next four years. Together, project by project and community by community, we can all fight climate change and pollution and bring clean energy and its economic benefits to all of our communities. The power is in our hands.
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