Bill Summary
The "Ending Intermittent Energy Subsidies Act of 2025" is a legislative proposal aimed at phasing out tax credits associated with clean electricity production and investment specifically for wind and solar energy. The bill amends the Internal Revenue Code of 1986 by introducing a gradual reduction in the clean electricity production and investment credits for facilities that generate electricity from these renewable sources.
Key provisions include:
1. **Termination of Transferability**: The bill restricts the transferability of clean electricity credits that are tied to wind and solar energy, effectively limiting their applicability.
2. **Phase-Out Schedule**: The legislation establishes a scheduled reduction in the credits:
- For production credits, the amount available will decrease from 80% in the first year after enactment to zero by the fifth year.
- For investment credits, similar reductions will apply, with the same percentage decrease over the four years following enactment.
3. **Effective Dates**: The amendments will take effect for taxable years and facilities placed in service after the bill's enactment.
Overall, this legislation is designed to gradually eliminate federal financial support for wind and solar energy, reflecting a shift in energy policy priorities.
Possible Impacts
Here are three examples of how the "Ending Intermittent Energy Subsidies Act of 2025" could affect people:
1. **Increased Energy Costs for Consumers**: The phase-out of clean electricity production and investment credits for solar and wind energy could lead to higher electricity prices for consumers. As incentives for renewable energy projects diminish, utility companies may pass on the increased costs associated with generating energy from these sources to consumers, making electricity more expensive for households and businesses that rely on solar and wind power.
2. **Investment and Job Loss in Renewable Energy Sector**: The gradual reduction of tax credits for solar and wind energy could discourage new investments in renewable energy projects. Companies in the renewable energy sector may face financial challenges, leading to layoffs or a slowdown in hiring. This could result in job losses for workers in the clean energy industry, which has traditionally been a growing sector offering employment opportunities.
3. **Impact on Climate Change Initiatives**: The reduction of financial support for renewable energy sources may hinder efforts to combat climate change. Individuals and communities that are invested in reducing their carbon footprint may find it less feasible to adopt solar or wind energy solutions without the financial incentives that make these technologies more affordable. This could slow down the transition to cleaner energy sources and impact overall sustainability goals in the community and beyond.
[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2838 Introduced in House (IH)]
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119th CONGRESS
1st Session
H. R. 2838
To amend the Internal Revenue Code of 1986 to phase-out the clean
electricity production and investment credits with respect to wind and
solar energy.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
April 10, 2025
Ms. Fedorchak (for herself, Mr. Goldman of Texas, Mr. Palmer, and Mr.
Weber of Texas) introduced the following bill; which was referred to
the Committee on Ways and Means
_______________________________________________________________________
A BILL
To amend the Internal Revenue Code of 1986 to phase-out the clean
electricity production and investment credits with respect to wind and
solar energy.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Ending Intermittent Energy Subsidies
Act of 2025''.
SEC. 2. TERMINATION OF TRANSFERABILITY OF PORTION OF CLEAN ELECTRICITY
CREDITS ATTRIBUTABLE TO WIND OR SOLAR ENERGY.
(a) Clean Electricity Production Credit.--Section
6418(f)(1)(A)(vii) of the Internal Revenue Code of 1986 is amended to
read as follows:
``(vii) so much of the clean electricity
production credit determined under section 45Y
as is not attributable to electricity produced
using solar or wind energy.''.
(b) Clean Electricity Investment Credit.--Section 6418(f)(1)(A)(xi)
of such Code is amended to read as follows:
``(xi) so much of the clean electricity
investment credit determined under section 48E
as is not allowed with respect to a qualified
facility (as defined in such section) which is
used for the generation of electricity using
wind or solar energy.''.
(c) Effective Date.--The amendment made by this section shall apply
to taxable years beginning after the date of the enactment of this Act.
SEC. 3. PHASE-OUT OF CLEAN ELECTRICITY PRODUCTION CREDIT WITH RESPECT
TO SOLAR AND WIND POWER.
(a) In General.--Section 45Y(d) of the Internal Revenue Code of
1986 is amended by adding at the end the following new paragraph:
``(4) Special rule for solar and wind energy.--In the case
of electricity produced from solar or wind energy, the amount
of the credit determined under subsection (a) (determined
without regard to this paragraph) shall be equal to the product
of the amount otherwise so determined, multiplied by--
``(A) in the case of electricity produced during
the first calendar year beginning after the date of the
enactment of the Ending Intermittent Energy Subsidies
Act of 2025, 80 percent,
``(B) in the case of electricity produced during
the second calendar year beginning after the date of
the enactment of the Ending Intermittent Energy
Subsidies Act of 2025, 60 percent,
``(C) in the case of electricity produced during
the third calendar year beginning after the date of the
enactment of the Ending Intermittent Energy Subsidies
Act of 2025, 40 percent,
``(D) in the case of electricity produced during
the fourth calendar year beginning after the date of
the enactment of the Ending Intermittent Energy
Subsidies Act of 2025, 20 percent, or
``(E) in the case of electricity produced after
such fourth calendar year, zero percent,''.
(b) Effective Date.--The amendments made by this section shall
apply to electricity produced after the date of the enactment of this
Act.
SEC. 4. PHASE-OUT OF CLEAN ELECTRICITY INVESTMENT CREDIT.
(a) In General.--Section 48E(e) of the Internal Revenue Code of
1986 is amended by adding at the end the following new paragraph:
``(4) Special rule for solar and wind energy.--The amount
of the clean electricity investment credit under subsection (a)
with respect to any qualified investment in a qualified
facility which generates electricity using wind or solar energy
shall be equal to the product of--
``(A) the amount of the credit determined under
subsection (a) without regard to this subsection,
multiplied by
``(B) in the case of a facility placed in service--
``(i) during the first calendar year
beginning after the date of the enactment of
the Ending Intermittent Energy Subsidies Act of
2025, 80 percent,
``(ii) during the second calendar year
beginning after the date of the enactment of
the Ending Intermittent Energy Subsidies Act of
2025, 60 percent,
``(iii) during the third calendar year
beginning after the date of the enactment of
the Ending Intermittent Energy Subsidies Act of
2025, 40 percent,
``(iv) during the fourth calendar year
beginning after the date of the enactment of
the Ending Intermittent Energy Subsidies Act of
2025, 20 percent, or
``(v) after such fourth calendar year, zero
percent,''.
(b) Effective Date.--The amendments made by this section shall
apply to property placed in service after the date of the enactment of
this Act.
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