Senate Bill Sparks Controversy Over Future of Clean Energy Tax Credits

The U.S. Senate has proposed a draft bill to phase out tax credits for solar and wind energy by 2028, while extending incentives for hydropower, nuclear, and geothermal energy until 2036. The proposal, which aligns with President Trump's administration preferences, is part of a larger Republican budget package.

The bill's language, circulated by Republican Senator Mike Crapo, modifies subsidies established by the 2022 Inflation Reduction Act, reducing incentives for solar and wind in 2026 and phasing them out by 2028. However, it offers more favorable terms for hydropower and nuclear projects until 2033, partially addressing concerns from clean energy advocates.

Key industry leaders have expressed dissatisfaction, asserting that the changes fall short of preserving crucial incentives for renewable energy growth. Despite the extended timeline for hydro facilities, gaps remain for upgrading existing infrastructure. The Senate revision progress has been noted on timelines and transferability of credits, yet some parties argue crucial consumer incentives remain at risk.

(With inputs from agencies.)