Amid Threats, Davids Pushes to Protect Tax Credits That Lower Kansans’ Energy Costs, Create Jobs

Representative Sharice Davids (D-KS-03) is fighting to protect tax credits that are saving Kansans money on energy bills, helping farmers, and creating thousands of good-paying jobs across the state. Last week, Davids urged congressional leaders to protect critical cost-saving provisions, which have bipartisan support, that President Trump and some congressional Republicans have threatened to eliminate in the upcoming budget process.

“These tax credits are cutting utility bills, lowering gas prices, and bringing jobs back to Kansas. We should be building on this progress, not rolling it back,” said Davids. “At a time when families are already dealing with higher costs, getting rid of these savings would be a direct hit to Kansans’ wallets. Some of my Republican colleagues have recently acknowledged the importance of these tax credits, and I hope their leadership will follow suit.”

The Inflation Reduction Act (IRA), which Davids voted for in 2022, is delivering major economic benefits to Kansas by lowering energy costs and driving job growth. These tax credits, which have already saved 3.4 million American families more than $8 billion, help Kansans install energy-efficient appliances, reduce electricity bills, and support homegrown industries like biofuels and wind energy.

How These Tax Credits Help Kansans:

• Lower Energy Bills: Tax incentives allow homeowners to make energy-efficient upgrades, reducing the burden of rising utility costs. With electricity prices up nearly 30 percent in the past decade, these credits put money back in consumers’ pockets.
• Cheaper Gas Prices: Biofuel tax credits support Kansas farmers and fuel retailers while keeping gas prices lower at the pump — E15 fuel alone saves drivers around $0.25 per gallon.
• More Jobs in Kansas: Thanks in part to IRA incentives, Panasonic is bringing 4,000 new jobs to De Soto in the largest economic development project in state history. Kansas is also a leader in wind and solar energy, which already support over 7,000 local jobs.
• Energy Independence: The IRA has spurred a 300 percent increase in American manufacturing investments, reducing reliance on foreign supply chains and ensuring stable energy prices for families.

Despite these benefits, congressional Republicans have proposed eliminating these tax credits as part of ongoing budget negotiations. Further, on his first day in office, President Trump signed an executive order halting the distribution of IRA funds that support these tax credits. Davids’ letter urges House and Senate Republican leaders to reject these efforts and uphold the cost savings that even some members of their party have recently supported.

“For the first time in a generation, America is ushering in a manufacturing revolution that is fortifying our supply chains, producing record levels of domestic energy, catalyzing workforces across the nation, and ending our reliance on foreign markets,” wrote Davids. “Now is the opportunity to solidify our nation as the global leader in energy production, innovation, and entrepreneurship all while saving folks more money – not reverse our progress as some congressional Republicans have suggested.

Last year, Davids visited a family in Kansas City, KS to see firsthand how these federal tax credits are helping Kansans lower their utility bills. Gayle Bergman and Anthony Null spent $949 on a home energy audit and the installation of energy-efficient insulation in their basement. They then received a tax credit of $285 when filing their annual taxes. They are also seeing savings on their monthly utility bills.

A full copy of the letter Davids sent to congressional leaders can be found here.