Overview

• The Senate bill scraps the House’s 60-day construction start requirement for tax credit eligibility, replacing it with a schedule that preserves full credits only for projects beginning construction this year.
• Projects starting construction in 2026 would receive 60 percent of their credits, those beginning in 2027 would get 20 percent, and no credits would be available for new projects in 2028 or beyond.
• Despite added flexibility, the Senate plan still rolls back major incentives that the 2022 Inflation Reduction Act would have sustained until 2032 or until a 25 percent reduction in power-sector emissions.
• The legislation carves out full credit eligibility for hydroelectric, nuclear and geothermal facilities that start construction by 2034.
• House Freedom Caucus conservatives have pledged to reject any Senate revisions perceived as watering down the original deep cuts to climate-friendly credits, raising the stakes for final negotiations.