Senate Bill Cuts Clean Energy Credits, Adds Taxes

The U.S. Senate is advancing a major tax-and-spending bill aligned with President Trump's second-term agenda that seeks to aggressively end or roll back clean energy incentives and impose new excise taxes on wind and solar projects. The bill accelerates the phase-out of tax credits and introduces a tax on projects constructed after June 16, 2025, or placed in service after 2027, particularly impacting those sourcing components from China. Advocates warn that the changes could raise consumer energy prices, threaten hundreds of gigawatts of planned renewable projects, and jeopardize U.S. climate goals amid rising electricity demand from data centers and AI. The new tax is projected to cost clean energy businesses an additional $4-$7 billion by 2036 and may make non-Chinese material requirements cost-prohibitive. While some moderate senators are attempting to amend the legislation, its future remains uncertain. The bill has drawn fierce criticism from environmentalists, industry leaders, and high-profile figures such as Elon Musk.