The close alliance on green policies between President Biden and President Emmanuel Macron of France shatters when it involves greenbacks.

That’s why Mr. Biden will be forced to defend his $740 billion tax, climate and health care law on Thursday when he hosts Mr. Macron for the first visit and state dinner of his presidency.

The White House billed the glitzy affair as a symbol of the strong ties between the U.S. and its oldest ally and a chance for the two countries to rearm their close alignment on global issues, including climate change, the war in Ukraine and competition with China.

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Key points of contention are expected to surface behind closed doors, however, as the two leaders get down to brass tacks on Mr. Biden’s seminal legislative accomplishment, what his Democratic allies in Congress dubbed the Inflation Reduction Act. 

Mr. Macron is among a chorus of European officials up in arms over the law’s generous tax credits for U.S.-manufactured electric vehicles, which they say pose a direct threat to their economic interests.