The U.S. Senate has proposed a more flexible phase-out of solar and wind tax credits in the One Big Beautiful Bill Act, but critics believe more should be done to safeguard public health.
What's happening?
On June 16, Reuters reported that the Senate tax committee's version of the bill would phase out solar and wind tax credits by 2028, while hydropower, nuclear energy, and geothermal projects would be eligible for incentives through 2036.
The bill's draft — released by Republican Mike Crapo, the committee chair — would allow solar and wind projects to recoup 60% of the credit's value beginning next year before ending it altogether in 2028. Meanwhile, hydropower, nuclear, and geothermal facilities could obtain full credit until 2033 before the incentives end via a phase-out in 2036.
The Hill reported that moderates could be appeased by the Senate tax committee's draft, which leaves solar and wind incentives in circulation for longer.
The House version would have required solar and wind projects to be generating electricity by 2028. In contrast, the Senate version makes a portion of the credits available for projects that begin construction by 2026 or 2027.
Why is this important?
While most Americans support achieving energy independence — a key priority for the Trump administration — they also share a desire for clean air and water, according to various polls, including by YouGov, the Environmental Protection Network, and Pew Research Center.
Diversifying the grid with clean or low-carbon energy can support both of these goals while also spurring economic growth. For instance, the Inflation Reduction Act had created more than 330,000 jobs in two years after becoming law in August 2022.
The Senate bill would support some greener types of power for longer (hydro, nuclear, and geothermal). However, solar and wind projects have been crucial parts of boosting energy security. When generating electricity, photovoltaic panels and turbines also don't spew pollution connected to chronic health conditions and millions of annual premature deaths.
These are among the reasons critics of the bill argue that it doesn't make sense to disincentivize these projects. What's more, thousands of jobs could be on the chopping block as a result of the legislation, and incentives for energy-efficient home upgrades and solar panels (which can bring electricity bills to $0) would still be on the way out.
What's being done about this?
Industry insiders praised the Senate's more measured approach to phasing out clean energy incentives, with Edison Electric Institute CEO Pat Vincent-Collaw telling The Hill, "These modifications are a step in the right direction, and we thank Chairman Crapo for his leadership in balancing business certainty with fiscal responsibility."
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Should the government continue to give tax incentives for energy-efficient home upgrades? Click your choice to see results and speak your mind. |
Absolutely 💯 However, environmental advocates say the bill could end up costing Americans more in the long run, stalling the development of green projects that slash harmful dirty fuel pollution.
"We will fight this disastrous bill every step of the way," Sara Chieffo, vice president of government affairs at the League of Conservation Voters, said in a statement. "Now is the time for Senators who have said they support a more reasonable approach to clean energy incentives to deliver — we need actions, not empty promises."
The legislation is still under review. If you believe more should be done to protect clean energy incentives, you can make your voice heard by contacting your representatives.
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