The aim of this page is to provide up-to-date information on the status of the clean energy tax credits and other federal funding for climate action. We will date all updates posted here, with the most current update at the top.
Last week the US House of Representatives passed the Senate version of the budget bill, H.R.1, and President Trump signed it into law.
Here are several summaries of the changes to clean energy tax credits and deductions, focusing mostly on the business/nonprofit sectors:
Plus Norton Rose Fulbright created a good discussion of the new requirements around Foreign Entities of Concern (FEOC).
And then for broader discussion of what this means see:
We will add more links as additional information is posted. We have also updated our other federal funding pages to reflect these changes.
It is disappointing to see our federal leaders turn their backs on affordable and clean energy resources, especially as the demand for electricity is growing across the nation. We are grateful to live in a region where our local municipalities, businesses and nonprofits will continue to lead by example.
The US Senate passed the budget bill 51-50 with Vice President Vance breaking the tie.
The final bill removed an addiitonal excise tax on wind and solar and the bill extended the deadline for wind and solar tax credits to projects that start before December 31, 2026. Consistent with the earlier House bill, all of the residential tax credits--for energy efficiency, renewable energy and electric vehicles--are phased out quickly.
Here's a summary of the status of each specific tax credit category from a tax advisory firm.
For other discussion see:
We will add more analysis of the bill as it emerges.
Because the Senate bill is different than the earlier House of Representatives bill, the Senate version goes back to the House for passage and then to the President for signature.
It is disappointing to see our federal leaders turn their backs on affordable and clean energy resources. We are grateful to live in a region where our local municipalities, businesses and nonprofits will continue to lead by example.
A unique feature of Senate budget bills is the analysis by the Senate Parlimentarian, which determines whether aspects of the bill meet the chamber's budget reconciliation rules. The parlimentarian has reviewed the draft Senate bill and identified a number of items that need to be changed or struck. That means GOP Senators are updating their version of the bill.
The Senate's proposed changes to clean energy tax credits passed the parlimentarian's review--which means those changes are still in play. A variety of efforts are ongoing to further soften the changes to the clean energy tax credits.
The parlimentarian did strike a provision that would have repealed the Inflation Reduction Act language authorizing environmental programs (so the programs are likely to survive, albeit without funding). The silver lining here is that if programs remain authorized it is easier for a new Congress to allocate funds to those programs in the future. The bad news is that the parlimentarian allowed a provision to eliminate the Greenhouse Gas Reduction Fund, aka the green bank provisions.
We'll add to this list as we see more updates.
In the meantime, we encourage local stakeholders to stay focused on the work at hand. The clean energy credits are definitely available for projects completed in 2025--which means this is a great time to take action.
The US Senate Committee on Finance released their draft bill related to clean energy credits earlier this week.
The Senate version offers a few changes to the House version but it retains a lot of the House cuts to clean energy credits. Key differences in the draft Senate legislation include:
A few of the more comprehensive summaries of the bill are:
We'll add to this list as we see more updates.
In the meantime, we encourage local stakeholders to stay focused on the work at hand. The clean energy credits are definitely available for projects completed in 2025--which means this is a great time to take action.
Early on May 22 the House passed "One Big Beautiful Bill Act," sending the budget to the Senate for review.
This version had more dramatic changes to clean energy tax cuts than the earlier House version of the bill.
Here is a quick summary of how the House bill changes clean energy tax credits:
Thanks to our colleagues at RMI for providing much of that summary.
For more on these changes, see
Of course none of this is certain yet. The House bill will go to the Senate where it is possible that the Senate will make changes, prompting negotiations between the two chambers before a final bill goes to the President for signature.
Again, we'll provide new updates as the discussions in Washington evolve.
In the meantime, we encourage local stakeholders to stay focused on the work at hand. The clean energy credits are definitely available for projects completed in 2025--which means this is a great time to take action.
The House Ways & Means Committee released a draft budget bill last week that proposes substantive changes to the clean energy tax credits available under the Inflation Reduction Act.
Specifically, the current draft proposes ending all electric vehicle (EV) credits (individual and business plus EV charging installation provisions) at the end of 2025.
The budget bill also terminates the residential clean energy credits for renewable energy and energy efficiency at the end of 2025.
The Investment Tax Credit—the provision for solar, geothermal and batteries in commercial facilities (and for tax exempt entities via Elective Pay)—is not eliminated immediately. The current credit levels would continue for projects completed by December 31, 2028 and then the funding would phase out starting in 2029 where entities could claim 80% of the current credit. The credit would be gone for projects completed in 2032 under this draft (whereas, currently, the credit begins to phase out in 2033). Additionally:
The current draft ends transferability (where an entity can sell their tax credit to another entity) and there’s not specific language ending Elective Pay.
None of this is certain, of course, This is the first version of the bill so it is still subject to debate in the House and then additional consideration in the US Senate. We’ve seen GOP members of both chambers speak out in support of the clean energy credits so perhaps the final bill preserve more of the existing clean energy tax credits.
Multiple entities have posted analyses of the draft budget. These include:
Again, we'll provide new updates as the discussions in Washington evolve.
In the meantime, we encourage local stakeholders to stay focused on the work at hand. The clean energy credits are definitely available for projects completed in 2025--which means this is a great time to take action.
