Senate Votes Accelerated Clean Energy Tax Credit Phase-Outs, China Component Taxes

President Donald Trump's new spending bill has introduced significant challenges for the U.S. renewable energy sector by accelerating the phase-out of key tax incentives for solar and wind projects after 2027 and imposing a new tax on projects using Chinese-made components. The Senate is voting on this legislation, which marks a departure from earlier versions that allowed projects begun before 2027 to qualify for investment and production tax credits. The bill has sparked sharp criticism from industry leaders, including Tesla CEO Elon Musk, who warned it would destroy millions of jobs and harm American strategic interests by favoring older energy industries over emerging ones. Clean energy stocks reacted negatively, with major companies such as NextEra Energy, Array Technologies, Enphase, and Nextracker experiencing share declines between 3% and 9%. However, some rooftop solar companies and manufacturers, like Sunrun and First Solar, saw gains due to preserved credits for leased rooftop systems and manufacturing. Analysts warn that the compressed project timelines and added taxes create significant execution risks and could delay or reduce planned renewable energy investments, while coal shares have risen amid the legislative support for fossil fuels.