Senate GOP Removes Excise Tax on Wind, Solar Projects

Senate Republicans have removed a last-minute excise tax targeting solar and wind projects that used components from China from their reconciliation bill, known as the 'One Big Beautiful Bill Act,' to secure critical support from Sen. Lisa Murkowski and maintain party unity. The excise tax, which was widely opposed by industry experts, lawmakers from both parties, and business leaders, was seen as a significant threat to the renewable energy sector as it could have raised electricity prices and stifled new clean energy projects. Although the removal of the tax was a relief to renewable energy advocates, the bill still imposes a stricter phaseout of clean energy tax credits, potentially affecting projects not producing electricity by 2028. The legislation includes provisions that repeal energy efficiency and renewable energy tax credits, create a new tax credit for metallurgical coal production, and allow polluters to pay fees to bypass environmental protections, which critics say will hinder new energy production and raise electricity costs nationwide. The nonpartisan Congressional Budget Office expects the bill to add trillions to the national debt, cut Medicaid coverage for nearly 12 million people, and reduce nutrition benefits. The bill now moves to the House of Representatives, where lawmakers aim to pass it by July 4.