Overview

• The House-approved bill would repeal clean energy tax credits included in the 2022 Inflation Reduction Act on December 31, four years earlier than scheduled.
• Tesla Energy has called on the Senate to implement a gradual wind-down of residential solar (Section 25D) and clean electricity (Section 48E) credits instead of an abrupt cutoff.
• Under the proposed legislation, only projects that begin construction within 60 days of enactment and start producing power by 2028 could qualify for remaining credits.
• Tesla warns that its energy division, which generated $2.7 billion in first-quarter revenue, could face significant losses if the credits expire immediately.
• The American Petroleum Institute praised the measure for preserving oil and gas incentives as the Trump administration shifts federal policy toward fossil fuels.