Senate GOP Proposes Major Cuts to Clean Energy, EV Tax Credits

The Senate Finance Committee's draft of President Donald Trump’s Fiscal Year 2026 budget largely mirrors the House's deep cuts to clean energy tax credits, including those for electric vehicles, rooftop solar, and energy-efficient appliances. Senate Republicans have proposed a somewhat slower phaseout of these credits compared to the House, but critics like Senator Ron Wyden warn the Senate bill still causes nearly as much damage to clean energy initiatives as the House version. The Senate bill extends construction timelines for renewable projects and removes some restrictive provisions from the House bill, but faces opposition from the House Freedom Caucus, which demands even steeper cuts. Clean energy advocates and groups in states such as Iowa are actively campaigning against the rollbacks, warning that these changes threaten jobs, investment, and renewable energy growth. While Senate moderates seek to soften the impact, the final outcome remains uncertain as the House and Senate must reconcile differences before fast-tracking the bill for President Trump's July 4 deadline. The ongoing dispute highlights tensions within the GOP between conservative factions pushing for aggressive cuts and moderates concerned about economic and environmental consequences.