The Restoring Energy Market Freedom Act would repeal 13 federal energy-related tax credits enacted under the Inflation Reduction Act and earlier laws. The repealed Internal Revenue Code sections include the Production Tax Credit for renewables (§45), the Clean Electricity Production Credit (§45Y), Clean Hydrogen Credit (§45V), Advanced Manufacturing Production Credit (§45X), Carbon Capture Credit (§45Q), Nuclear Production Credit (§45J), Zero-Emission Nuclear Credit (§45U), Energy Investment Tax Credit (§48), Clean Electricity Investment Credit (§48E), Advanced Energy Project Credit (§48C), Advanced Coal Credit (§48A), Industrial Gasification Credit (§48B), and the Advanced Manufacturing Investment Credit (§48D — the CHIPS Act semiconductor facility credit). The bill also strips Section 38 of the IRC of cross-references to these credits in the General Business Credit framework and adjusts the Section 6417 elective-payment ('direct pay') and Section 6418 transferability provisions accordingly. The change is retroactive: it applies to taxable years beginning after December 31, 2024. Republican Rep. Scott Perry of Pennsylvania leads the bill with three Republican co-sponsors from the House Freedom Caucus.
Environmental Concerns
- Clean energy production tax credits — IRC §§ 45 (renewables), 45U (zero-emission nuclear), 45V (clean hydrogen), 45X (advanced manufacturing), 45Y (clean electricity) repealed
- Clean energy investment tax credits — IRC §§ 48 (legacy ITC), 48C (advanced energy projects), 48E (clean electricity ITC) repealed
- Carbon capture credit — IRC § 45Q repealed
- Industrial energy credits — IRC §§ 48A (advanced coal), 48B (industrial gasification), 45J (nuclear PTC) repealed
Corporate Benefits
- Semiconductor manufacturing credit — IRC § 48D (CHIPS Act facility investment credit) repealed
Congressional Summary
Restoring Energy Market Freedom ActThis bill repeals multiple business tax credits related to the production and sale of energy.Specifically, the bill repeals therenewable electricity production tax credit (for electricity using wind, solar, or other specific types of renewable energy produced by a qualified facility for which construction began before 2025);clean electricity production tax credit (for electricity produced using a qualified facility that has no greenhouse gas emissions and was placed into service in 2025 or after);advanced nuclear production tax credit (for electricity produced and sold by a qualified nuclear power facility placed into service before 2021);zero-emission nuclear power production tax credit (for electricity produced and sold by a qualified nuclear power facility between 2024 and 2032);carbon sequestration tax credit (for the capture and sequestration of carbon oxide);clean hydrogen production tax credit (for clean hydrogen produced at a qualified clean production facility);advanced manufacturing production tax credit (for the production and sale of qualified components, including solar and wind energy components);energy investment tax credit (for investments in certain qualified energy property placed into service before 2025);clean electricity investment credit (for investments in qualified energy property placed into service in 2025 or after);qualifying advance coal project tax credit (for investments in qualifying advanced coal projects),clean coal investment tax credit (for investments in qualifying gasification projects);advanced energy project tax credit (for investments in qualifying advanced energy projects); andadvanced manufacturing investment tax credit (for investments in semiconductor or semiconductor manufacturing equipment).
Details
- Congress
- 119th
- Chamber
- House
- Status
- summarized
- Action
- Introduced in House
- Action Date
- 2025-01-09
- Date Added
- 2026-05-13
- Source
- Congress.gov →
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