House Republicans released a draft tax bill Monday that would significantly roll back clean energy incentives established under President Biden’s 2022 climate law. The proposal, advanced by the Ways and Means Committee, accelerates phase-outs and imposes new restrictions on a broad array of tax credits critical to clean energy deployment.
Key provisions include:
Hydrogen tax credit (45V): Eliminated by the end of 2025.
Alternative fuel vehicle refueling credit (30C) and home energy efficiency credit: Both terminated by the end of this year.
Residential clean energy credit (25D): Phased out entirely.
Clean electricity production (45Y) and investment tax credits (48E): Phased out by the end of 2031, with values dropping 20% annually starting in 2029.
Nuclear production tax credit and advanced manufacturing credit: Both sunset by 2031.
Clean fuel production credit (45Z): Extended four years through 2031, but restricted to fuels using feedstocks from the U.S., Mexico, or Canada.
The bill also includes tighter rules on transferability of credits and disqualifies projects using materials from certain foreign adversaries.
While full repeal of the Inflation Reduction Act’s energy incentives had been floated in earlier GOP drafts, this version reflects a more targeted rollback—signaling potential compromise with moderates but raising alarm for clean energy developers, especially those with long lead times.
The Ways and Means, Energy Committee marks up its portion of Trump’s “big beautiful bill” today at 2:30 pm ET. House Republicans want to pass their reconciliation budget out of their chamber by the end of next week.