The Senate on Tuesday approved its version of the Republican tax, energy and border security bill, after making changes that eased up on provisions opposed by the wind and solar industry.
The package passed 50 to 50, with Republican Sens. Susan Collins (Maine), Thom Tillis (N.C.) and Rand Paul (Ky.) joining all Democrats against it.
Vice President JD Vance broke the tie to pass the legislation under the Senate’s budget reconciliation framework, which avoids the need for 60 votes.
Passage came after senators removed a proposed excise tax on wind and solar projects, which was to be levied based on their compliance with strict sourcing requirements.
The chamber also eased the timeline for phasing out wind and solar tax credits that had been broadened by the Inflation Reduction Act of 2022.
Those changes were pushed by a handful of senators, including Sens. Joni Ernst (R-Iowa), Chuck Grassley (R-Iowa), John Curtis (R-Utah) and key swing vote Lisa Murkowski (R-Alaska).
“In the end, we got the job done … and we think the agenda is the right one for the American people,” said Senate Majority Leader John Thune (R-S.D.). “I appreciate the narrow margins that they have over [in the House], but I think we gave them a really strong product.”
Murkowski said her decision to vote for the bill was “agonizing,” citing cuts to Medicaid and food assistance, and criticized the legislative process. “We rushed to get a product out,” she told reporters.
She decided to vote for it to renew the 2017 tax cuts and due to provisions that help the Coast Guard and aviation, among other reasons.
“She, as you know, is a very independent thinker and somebody who studies the issues within the market world, and I was grateful that at the end of the day, she concluded, as the rest of us did, that this was the right direction for the future,” Thune said.
Senate passage sends the bill back to the House, which approved a different version of President Donald Trump’s signature legislation.
House Republicans had been expected to agree to the Senate’s changes and stick to the July 4 timeline Trump had sought, but they could instead choose to start a conference to negotiate a different compromise, since some in the House GOP oppose Senate provisions.
Leadership was bullish on quick passage. “The House will work quickly to pass the One Big Beautiful Bill that enacts President Trump’s full America First agenda by the Fourth of July,” Speaker Mike Johnson (R-La.) and others said in a statement following the Senate’s action.
“The American people gave us a clear mandate, and after four years of Democrat failure, we intend to deliver without delay,” the House leaders said.
Bill details
The final Senate bill would still end tax credits for wind and solar energy, carving them out of the technology-neutral clean energy policies from the 2022 climate law.
But wind and solar projects would still be able to get tax credits as long as they start construction by June 2026 or are placed in service by the end of 2027.
The “start construction” language was added Tuesday in a bid to protect projects that have gone through planning, finance or other early steps, but may not be ready to produce power by the end of 2027. The bill otherwise largely follows text released last week.
The legislation would cut off electric vehicle tax credits at the end of September, and credits for charging infrastructure would end in June 2026.
Critical mineral incentives would end under the bill, which would also create a tax incentive for metallurgical coal and a credit for nuclear energy facilities built in areas with large nuclear power employment.
The package does not include the controversial public land sales pushed by Energy and Natural Resources Chair Mike Lee (R-Utah). Amid opposition from some Republicans and potential issues with fitting the policies into the budget reconciliation process, Lee withdrew the provision in recent days.
The sprawling legislation includes language to indefinitely extend Trump’s 2017 tax cuts, restrict eligibility for Medicaid and boost funding for immigration enforcement personnel.
Democrats were quick to slam the bill after passage Tuesday. Minority Leader Chuck Schumer (D-N.Y.) called the measure a betrayal and said that Republicans had “covered the Senate in utter shame.”
The House Sustainable Energy and Environment Coalition, composed exclusively of Democrats, called out the energy provisions passed by the Senate.
“This bill cedes America’s leadership in the industries of the future while giving handouts to the industries of the past,” the group wrote in a statement.
Oil and gas wins
The legislation would claw back Inflation Reduction Act grants, mandate more onshore and offshore drilling, zero out penalties for fuel economy standards, and delay the fee on methane leaks.
It would also accelerate National Environmental Policy Act reviews for companies that pay a fee. Other permitting provisions were cut from the bill.
“We applaud the Senate for passing the One Big Beautiful Bill to bolster America’s energy advantage and support economic growth,” said American Petroleum Institute CEO Mike Sommers.
“This historic legislation will help usher in a new era of energy dominance by unlocking opportunities for investment, opening lease sales and expanding access to oil and natural gas development.”
Reporter Lisa Kashinsky contributed.
