Policy Insight June 9th, 2025
House Republicans Urge Senate to Support Clean Energy Tax Credits
On Friday, 13 House Republicans released a statement urging the Senate to seize a “critical opportunity” and protect clean energy tax credits by amending the House Budget proposal, which takes an axe to many of these provisions.
Main priorities:
The statement focuses on three areas of concern:
The overly restrictive foreign entity of concern provisions, which restrict companies’ supply chains from sourcing from certain countries, including China;
The uncommon phase out schedule for tax credits, which bases its timeline on when the project is “placed in service” instead of when the project “commence[s] construction;” and
The limits on the transferability of credits, which no longer lasts for the full lifetime of the credit.
Investments at risk:
The statement highlights that $14 billion in energy projects have been cancelled or delayed since January- $4.5 billion of which has occurred solely in April. The House Republicans warn, “without a clear signal from Congress encouraging continued investments and offering business certainty as these provisions are phased out, project cancellations will continue to snowball.”
Letters versus votes:
This letter follows similar letters in support of clean energy tax credits from 21 House Republicans in March and 14 House Republicans in May. While these members have urged the Senate to make amendments to the budget proposal, almost all signatories voted in support of the bill to help it pass the House. Thus, it is uncertain if the exclusion of clean energy tax credits in the final budget proposal would shift their vote. House Republicans can only afford to lose three votes.
Over to the Senate:
The Senate is meant to finalize details in their budget bill relating to clean energy tax credits sometime at the end of this week or the start of next week.
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