The latest on the Big Beautiful Bill—and what it means for energy and power. And on timing: The Senate voted Saturday to advance the measure, and leaders set an ambitious July 4 deadline to approve the legislation.
In a 940-page bill the Senate released late on Friday, there was an important tax provision—one that would both 1) quickly phase out existing federal tax subsidies for wind and solar power by 2027 and 2) add a new tax on future projects. “This is how you kill an industry,” E2’s Bob Keefe told the NYT. “And at a time when electricity prices and demand are soaring.”
That means not just unwinding IRA tax credits, but adding a penalty on all new wind and solar that comes online after 2027, even if the projects didn’t get earlier federal subsidies.
The new tax would ratchet up the costs of wind and solar projects by 10–20%, not including the cost of losing the IRA-era credits, according to analysts at the Rhodium Group.