US Senate Removes Solar, Wind Tax in Clean Energy Bill

The One Big Beautiful Bill Act, backed by President Trump, has narrowly passed the US Senate and is now moving to the House for further debate. The bill makes significant changes to clean energy policy, including an accelerated phase-out of investment and production tax credits for solar and wind projects, which has raised concerns about its impact on clean energy development. A controversial tax targeting projects using parts from "foreign entities of concern," widely understood to mean China, was removed from the bill after intense lobbying by industry groups, relieving the sector of potential $7 billion in added costs. Clean energy stocks surged following the Senate's removal of this tax, with major companies like NextEra Energy, AES, Sunrun, and SolarEdge Technologies seeing significant gains. However, industry leaders remain cautious, noting that the new credit timelines could still hinder long-term project planning and investment. The bill's passage is expected to have political fallout in Republican districts that benefited from previous clean energy investments under the Biden-era Inflation Reduction Act.