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Politics/Government / Wind, Solar, and Washington’s Wasteful Subsidies
« Last post by Elderberry on Today at 07:00:57 am »Economic Policy Innovation Center by Sarah Wagoner July 1, 2025
The Senate’s version of the One Big Beautiful Bill (OBBB) has made two green energy tax credits more problematic. The Inflation Reduction Act (IRA) expanded existing energy tax credits at a projected cost of nearly $2 trillion. As the reconciliation window closes, Congress has a critical opportunity to repeal the IRA’s expansion, lock in necessary savings, and promote pro-growth policies.
Senate Revisions to the House’s IRA Repeal
Under the IRA, most of the green energy tax credits were set to fully phase out between 2032 and the point at which greenhouse gases dropped to 25% below 2022 levels. In the bill that passed the House, conservatives secured earlier an earlier phase-out deadline for most credits and a requirement that projects seeking to qualify for the Investment Tax Credit (ITC) and the Production Tax Credit (PTC) must begin construction within 60 days of enactment and be placed in service before December 31, 2028.
The ITC and PTC have primarily been used by wind and solar developers and, since beginning construction within 60 days is a difficult task, these two forms of energy production would have been the most impacted by the new requirement.
In contrast, the Senate-passed version of the OBBB undermines these safeguards. The Senate bill includes a 2027 placed-in-service deadline for wind and solar projects seeking to qualify for the ITC and PTC; however, there is an exemption.
More: https://epicforamerica.org/federal-budget/wind-solar-and-washingtons-wasteful-subsidies/
The Senate’s version of the One Big Beautiful Bill (OBBB) has made two green energy tax credits more problematic. The Inflation Reduction Act (IRA) expanded existing energy tax credits at a projected cost of nearly $2 trillion. As the reconciliation window closes, Congress has a critical opportunity to repeal the IRA’s expansion, lock in necessary savings, and promote pro-growth policies.
Senate Revisions to the House’s IRA Repeal
Under the IRA, most of the green energy tax credits were set to fully phase out between 2032 and the point at which greenhouse gases dropped to 25% below 2022 levels. In the bill that passed the House, conservatives secured earlier an earlier phase-out deadline for most credits and a requirement that projects seeking to qualify for the Investment Tax Credit (ITC) and the Production Tax Credit (PTC) must begin construction within 60 days of enactment and be placed in service before December 31, 2028.
The ITC and PTC have primarily been used by wind and solar developers and, since beginning construction within 60 days is a difficult task, these two forms of energy production would have been the most impacted by the new requirement.
In contrast, the Senate-passed version of the OBBB undermines these safeguards. The Senate bill includes a 2027 placed-in-service deadline for wind and solar projects seeking to qualify for the ITC and PTC; however, there is an exemption.
More: https://epicforamerica.org/federal-budget/wind-solar-and-washingtons-wasteful-subsidies/
