House Passes Reconciliation Package that Would End Energy Tax Credits

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The U.S. Capitol
The U.S. Capitol | David Maiolo, CC BY-SA-3.0, via Wikimedia Commons
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The House of Representatives narrowly passed President Donald Trump’s “One, Big Beautiful Bill” that would extend tax cuts for individuals and render energy tax credits effectively useless. 

The House of Representatives narrowly passed President Donald Trump’s “One, Big Beautiful Bill” that would extend tax cuts for individuals and render energy tax credits effectively useless. 

After meeting through the night, the House passed H.R. 1 by 215-214 in an early morning vote May 22. The Senate has yet to take up the package, but the bill is being passed through reconciliation, meaning it is exempt from the filibuster. 

“Today, the House has passed generational, nation-shaping legislation that reduces spending, permanently lowers taxes for families and job creators, secures the border, unleashes American energy dominance, restores peace through strength, and makes government work more efficiently and effectively for all Americans,” House Speaker Mike Johnson (R-La.) said in a statement. 

The bill would sunset tax credits for renewables, storage and nuclear earlier than current law and add new restrictions to foreign components. (See House Committees Mark up Budget Bill that Guts Energy Tax Credits.) 

It also would require that renewable and storage projects be completed — rather than begin construction — by the end of the year to qualify. Nuclear plants were spared this provision. (See related story, So far, Nuclear Energy Credits Remain in Reconciliation Bill.)

American Clean Power Association CEO Jason Grumet called on the Senate to reject the House’s hardline approach to winding down tax credits, which last were updated by the Inflation Reduction Act of 2022, passed by Democrats using reconciliation. 

“This morning, the House voted to immediately end the clean energy tax incentives that provide economic growth, good-paying jobs and low-cost electricity to millions of Americans,” Grumet said in a statement. “By a margin of one vote, the House voted to retreat in our competition with China for manufacturing jobs and to weaken our technology sector in the global race for digital dominance.” 

American Council on Renewable Energy President Ray Long said growing demand for electricity requires generation of all kinds, and the bill would set back Trump’s goal of reliable and affordable power. 

“ACORE is committed to working with Congress and President Trump to make any improvements to this legislation and help them deliver on his promise to slash energy costs for Americans by 50%,” Long said in a statement. “It’s time to achieve American energy dominance across all technologies.” 

Advanced Energy United also argued that the bill would lead to reliability issues and raise prices. 

“At a time of growing demand, economic uncertainty and fierce competition, we need smart, certain tax policies that are pro-growth,” CEO Heather O’Neill said in a statement. “Last year alone, the advanced energy industry added over 50 GW of new capacity to the U.S. grid, generated an estimated $400 billion in domestic revenue and led the way with critical investments in energy storage, nuclear power and American manufacturing. This work must continue without delay to power the U.S. economy and to keep the lights on across the country.” 

The Solar Energy Industries Association also called on the Senate to change the legislation, with CEO Abigail Ross Hopper saying that deploying solar and storage is the “only way” the grid can keep up with growing demand. 

“If this bill becomes law, America will effectively surrender the AI race to China, and communities nationwide will face blackouts,” Hopper said in a statement. 

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