Welcome to Tax Watch, a new feature in The Hill’s Business & Economy newsletter focused on the fight over tax reform and the push to extend the 2017 Trump tax cuts this year.

A group of four Senate Republicans warned against a “full-scale” repeal of energy tax credits passed by Democrats in 2022.

“While we support fiscal responsibility and prudent efforts to streamline the tax code, we caution against the full-scale repeal of current credits, which could lead to significant disruptions for the American people and weaken our position as a global energy leader,” wrote Republican Sens. Lisa Murkowski (Alaska), John Curtis (Utah), Thom Tillis (N.C.) and Jerry Moran (Kan.). 

Their letter, addressed to Senate Majority Leader John Thune (R-S.D.), is notable since a bloc of four senators could be enough to block Republicans’ budget reconciliation bill from moving forward. 

If all four are willing to hold firm, at least some of the incentives for low-carbon energy projects passed by Democrats in the 2022 Inflation Reduction Act could remain in place — though it’s not clear from the letter which incentives they hope to keep or whether they’d be open to reducing some of the credits instead of fully axing them.

— Read more here.