The Senate Finance Committee version of the Republicans’ budget megabill would delay the end of some tax incentives from the Democrats’ climate law, according to text released Monday evening.
The legislation, however, would not save incentives for renewable energy sources as some companies and groups have been lobbying for.
It would accelerate the phasedown of solar and wind production and investment tax credits beginning in 2026. The legislation instead favors energy sources like geothermal, hydropower and nuclear.
Gone is a House requirement forcing projects across energy sources to start construction within 60 days of the bill’s enactment, something that may help renewables. But the new text would keep supply chain mandates opposed by industry.
The bill would eliminate the $7,500 consumer tax credit for electric vehicles that are purchased 180 or more days after enactment. Hydrogen incentives would also be phased out.
The Senate Finance Committee would extend biofuel incentives until the end of 2031, but would reduce the value of credits for certain fuel types.
The bill would phase out credits for residential energy efficiency, including for the construction of energy-efficient homes and the installation of solar panels, heat pumps and battery storage.
The legislation does not include a House-passed provision that would impose fees on EVs and hybrids. Republicans had been expecting the Senate parliamentarian to issue a ruling on the provision’s eligibility under budget reconciliation rules. It was not immediately clear if the parliamentarian had issued such a ruling.
