WASHINGTON, D.C. – U.S. Senator Kevin Cramer (R-ND) and Congresswoman Julie Fedorchak (R-ND)are calling on congressional leadership to reevaluate and reform federal energy tax credits to better align with America's goals of energy reliability, affordability, and security.

In a letter sent to House and Senate Republican leaders and Commitee Chairs, the two former state utility regulators warn current energy tax policy distorts markets and weakens the electric grid by disproportionately subsidizing intermittent power sources like wind and solar.

“We understand state and regional power markets and strongly believe smart, targeted federal investments in our energy sector can be in the national interest. Multiple federal statutes state the public policy of the United States is to provide a reliable and resilient grid, yet all too often our tax code subsidizes the opposite,” they write. “Regrettably, it continues to shower intermittent energy generators with incentives and resources without regard to its contribution to a rapidly degrading electrical grid.”

The letter raises concerns about the state of the U.S. power grid, citing a recent report from the North American Electric Reliability Corporation (NERC) found 11 of 18 Regional Transmission Organizations face an elevated risk of resource adequacy shortfalls. The Midcontinent Independent System Operator (MISO)—which serves 45 million Americans—is at high risk of not having enough electricity to meet demand, even under normal conditions.

Cramer and Fedorchak call on Congress to critically assess energy tax credits passed in the Inflation Reduction Act using clear criteria:

  • Have these tax credits strengthened the electric grid, or made it more fragile? 

  • Have they compromised the reliable delivery of power? 

  • Have they made the grid more difficult to operate? 

  • Has the consumer at the end of line seen prices increase or not? 

  • Have we complicated the situation by incentivizing generation sources in need of expensive and often redundant transmission lines?

Cramer and Fedorchak are calling for a responsible phase-out of costly tax credits like 45Y and 48E, which favor only zero-emission sources while overlooking key attributes like reliability, affordability, and dispatchability. They highlight these credits send the wrong signals to the energy market and contribute to growing risks to grid stability. Instead, they support targeted incentives such as 45Q for carbon capture and 45U for existing nuclear power—tools that reduce emissions while helping maintain dependable, affordable electricity. 

“Generators should be paid for their performance; not how good they make policymakers feel,” they conclude. “As we continue to formulate the parameters of an American energy dominance agenda, we stand ready to work with you and other Republican elected officials to deliver on the mandate the American people entrusted with us.”

CLICK HERE to read the full letter.