The Republicans’ latest megabill text includes a new tax on renewable energy companies, beyond rolling back incentives from the Democrats’ 2022 climate law.
But even though the budget reconciliation legislation also includes language to sell some public lands for housing, the provision may not be around for much longer.
The Inflation Reduction Act tax credit and public land proposals are among the most contentious items in the GOP’s tax cut, energy and border security spending effort.
Hours after the Senate Republicans released theirlatest tax plan for the megabill, companies and lawmakers noticed a new tax affecting solar and wind companies. That’s on top of stricter rollbacks than senators had floated earlier.
The proposed tax would affect projects that don’t meet new restrictions on renewable energy produced with parts tied to certain U.S. adversaries like China.
“The new tax could apply to many, if not all, wind and solar projects that start being built from effectively 2028 onward. All new projects would have one of two options: pay the tax or attempt to demonstrate compliance with the material assistance limits,” said Ben King, associate director of climate and energy for the Rhodium Group, a consulting firm.
“The challenge with the latter is that the rules for demonstrating compliance still need to be written, and it’s likely to be a process that’s onerous bordering on impossible — even if you actually have a manufactured product that would meet the material assistance limits,” King said.
It’s unclear whether renewable energy supporters in the Senate will try to strip the language when the amendment vote-a-rama begins ahead of final passage.
Energy Secretary Chris Wright released a statement in support of the tax provisions. Elon Musk said the bill favored industries of the past.
Public lands
Senate Republicans leaders have apparently promised Montana Republican Sen. Tim Sheehy and others an amendment to strip language to sell some public lands for housing.
The parliamentarian had yet to say whether the proposal from Energy and Natural Resources Chair Mike Lee (R-Utah) complies with budget reconciliation rules.
“I have just concluded productive discussions with leadership. I will be leading an amendment to strip the sale of public lands from this bill. I will vote yes on the motion to proceed,” Sheehy wrote on social media Saturday. “We must quickly pass the Big Beautiful Bill to advance President Trump’s agenda.”
Montana’s other Republican senator, Steve Daines, has also trumpeted such an amendment, and both of Idaho’s Republican senators have voiced opposition to land sales in reconciliation.
Reporters Tim Cama and Garrett Downs contributed.
