The cost of the Inflation Reduction Act's energy and climate provisions is now projected to be significantly higher than the American people were led to believe. This significant increase in cost is partly due to investments in climate-friendly technology, according to the Congressional Budget Office (CBO).

In total, the CBO now estimates that the energy provisions of the law will cost $428 billion more than originally projected.

CBO Director Phillip Swagel acknowledged that the costs of energy-related tax provisions far exceed the original projections made by the staff of the Joint Committee on Taxation.

The agency highlighted several factors contributing to this cost escalation.

One of the major factors is the higher number of individuals expected to claim tax credits for electric vehicles. Proposed environmental regulations and flexible guidance from the Treasury Department have pushed the market toward electric vehicles, leading to an increase in tax credit claims.

Additionally, there has been more investment in battery manufacturing, as well as wind and solar power development, than initially anticipated. These investments contribute to the increased costs associated with the energy and climate provisions of the Inflation Reduction Act.

While the surge in tax credit claims plays a significant role in this increase, the CBO also noted that it has reduced its projected revenues from gasoline excise taxes due to technical factors.

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The substantial increase in the projected cost of the Inflation Reduction Act's energy and climate provisions is a matter of concern. It raises questions about the accuracy of the initial estimates and the potential impact on the federal budget. Such excessive spending must be scrutinized and addressed to ensure responsible fiscal management.

The Biden administration must be held accountable for this wasteful spending.