Federal tax credits for wind and solar energy production and investment would be phased out over four years, dropping by 20 percentage points each year until they hit zero. The bill would also immediately block wind and solar projects from transferring their clean energy tax credits to other companies — a mechanism that currently helps finance new renewable projects. Other forms of clean energy, like nuclear or geothermal, would not be affected by the phase-out.
Environmental Concerns
- Section 45Y production credit for wind and solar — Phased to zero over four years (80%, 60%, 40%, 20%, 0%)
- Section 48E investment credit for wind and solar — Phased to zero over four years on the same schedule
- Transferability of wind and solar clean-energy credits — Removed effective on enactment
Corporate Benefits
- Federal subsidy support for wind and solar developers — Production and investment credits phased out, transfer market closed
Congressional Summary
This bill phases out and eliminates the ability to transfer federal tax credits for solar and wind investments and energy production. Specifically, the bill phases out over five years the (1) clean electricity investment tax credit for investments in a facility that generates electricity using solar or wind energy, and (2) clean electricity production tax credit for electricity produced from solar or wind energy. Further, the bill eliminates the ability of a taxpayer to transfer to a third party in exchange for cash any portion of the clean electricity investment tax credit and clean electricity production tax credit attributable to solar or wind energy.
Details
- Congress
- 119th
- Chamber
- House
- Status
- summarized
- Action
- Introduced in House
- Action Date
- 2025-04-10
- Date Added
- 2026-04-16
- Source
- Congress.gov →
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