# New Analysis: Inflation Reduction Act’s Energy Tax Credits Could Cost Taxpayers $4.7 Trillion by 2050 

*“The massive cash transfer from taxpayers to private firms under the guise of environmentalism creates an overwhelming and undue burden on taxpayers who continue to pay for fiscally irresponsible federal spending.”*

March 11, 2025 • News Releases 

A new policy analysis from the Cato Institute’s [**Travis Fisher**](https://www.cato.org/people/travis-fisher), director of energy and environmental policy studies, and **Joshua Loucks**, research associate in energy and tax policy, reveals that energy tax credits in the Inflation Reduction Act (IRA) could saddle taxpayers with a staggering **$4.7 trillion** bill by 2050.

Fisher and Loucks argue that lawmakers should repeal the IRA, stating:

*“The massive cash transfer from taxpayers to private firms under the guise of environmentalism creates an overwhelming and undue burden on taxpayers who continue to pay for fiscally irresponsible federal spending.”*

👉 **Read the full analysis** [**here**](https://www.cato.org/policy-analysis/budgetary-cost-inflation-reduction-acts-energy-subsidies). 
📺 Fisher and Loucks also break down their findings in [**this video**](https://www.cato.org/multimedia/cato-video/budgetary-cost-inflation-reduction-acts-energy-subsidies).

For media inquiries or to schedule an interview, please contact [**mmiller@​cato.​org**](mailto:mmiller@cato.org).

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