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5d ago

House Clears Early End to Solar and Wind Credits in Budget Bill

President Trump’s imminent signature will shift federal incentives from solar and wind to nuclear, geothermal, battery storage and fossil fuel production

The federal budget bill is expected to severely impact new rooftop solar installation in California due to the loss of a major tax credit.
A wind farm is shown in Movave, California, U.S., November 8, 2019. REUTERS/Mike Blake/File Photo
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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.