KANSAS CITY, Mo. — U.S. Sen. Jerry Moran (R – Kansas) is one of four GOP U.S. senators calling for certain clean energy tax credits passed in 2022 to stay in place.
The Panasonic electric vehicle battery plantthat's coming to De Soto, Kansas, relies on billions of dollars of federal incentives.
The Inflation Reduction Act passed along party lines in 2022 as part of President Joe Biden’s agenda. It included incentives that provide electric vehicle factories with $1 billion each year to encourage production.
In a letter sent this week to Senate Majority Leader John Thune, the senators caution against an all-out repeal of the IRA credits.
KSHB 41 has highlighted concerns that the federal funding would be removed as part of a GOP effort to cut government spending.
"Federal funding is incredibly important," Gov. Laura Kelly (D – Kansas) told reporter Alyssa Jackson in February. "Just like our local communities can’t deal without a partnership with the state, there are some things we can’t do if we don't have the support of the federal government."
You can read Alyssa's February report on tax incentives or watch in the video player below.
It remains unclear what President Donald Trump’s thoughts are when it comes to clean energy manufacturing tax credits, specifically.
He did sign an executive order, Unleashing American Energy, on his first day in office.
The order mentions eliminating the electric vehicle mandate and considering the elimination of "unfair subsidies and other government-imposed market distortions that favor EVs over other technologies".
On the other hand, President Trump has been vocal about expanding U.S. manufacturing. Harming a facility that aims to bring 4,000 jobs does not align with that vision.
The job creation aspect is a key part of the letter signed by Sen. Moran. Senators Lisa Murkowski (R – Alaska), Thom Tillis (R – North Carolina) and John Curtis (R – Utah) also signed the letter.
“A wholesale repeal, or the termination of certain individual credits, would create uncertainty, jeopardizing capital allocation, long-term project planning, and job creation in the energy sector and across our broader economy,” the letter stated.
The letter also states that while the senators support fiscal responsibility, “we urge a targeted, pragmatic approach that balances these priorities without undercutting current and future private-sector investments.”
Last October, Moran traveled to Japan to meet with senior officials at Panasonic to update them on the progress of the De Soto project.
"I will continue to work with Panasonic to ensure that the talented Kansas workforce is able to ensure this investment is a success," Moran said in a press release highlighting his trip.
This week's letter comes as both houses of Congress are working through a high-profile, complicated and, at times, contentious budget reconciliation process. Government spending cuts are a big part of the budget framework, which also includes some of President Donald Trump’s domestic agenda priorities, such as extending tax cuts and mass deportations.
All four senators voted against the Inflation Reduction Act. Sen. Curtis was a member of the House of Representatives at the time.
A spokesperson for Moran provided a statement to KSHB 41 News Friday afternoon.
“As I said three years ago, President Biden’s Inflation Reduction Act did not reduce inflation, raised taxes on Kansans and called for hiring thousands of IRS agents to target more Americans with tax audits. As Congress works to draft tax legislation, I will support policies, including tax credits that will benefit energy producers in Kansas. I support an all-of-the-above energy strategy that includes fossil fuels, coal, solar, nuclear, electric, biofuels and more. We need more investments in energy production, and tax credits are one way to bring production to the U.S., promote our energy independence, support manufacturing jobs in the U.S. and further investments in domestic energy production.”
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