Overview
- The House approved the tax and spending bill 218-214 on July 3, sending it to President Trump for expected signature on Friday.
- The legislation ends the 30% tax credit for newly purchased solar and wind projects after December 31, 2025 and phases out credits for leased systems by the end of 2027.
- Energy Innovation estimates that removing the subsidies early could slash U.S. electricity capacity by roughly 300 gigawatts as demand surges from data centers and AI.
- Credits for nuclear and geothermal energy are extended through 2033, and battery storage projects retain full 30% credits until 2033 before phasing out by 2036.
- The bill also mandates new oil and gas lease sales on federal lands and offshore, grants a 2.5% production tax break for steel-making coal and lowers coal royalty rates on public lands.