The proposal accelerates the expiration of renewable energy subsidies under the 2022 Inflation Reduction Act. 

A US Senate committee proposed phasing out tax credits for solar and wind energy by 2028 while extending incentives for nuclear, hydropower, and geothermal energy until 2036. The proposal accelerates the expiration of renewable energy subsidies under the 2022 Inflation Reduction Act.

Key changes:

  • Solar/wind credits reduced to 60% in 2026, eliminated by 2028
  • Nuclear, hydro, and geothermal to keep full credits until 2033, and to phase out by 2036
  • Rooftop solar tax credits for homeowners to end

“We hope that this measure will be adopted later this Congress to ensure that these multi-purpose facilities continue to provide clean, reliable energy for generations to come,” said Malcolm Woolf, CEO of the National Hydropower Association

Industry groups opposed the changes, warning of slowed renewable energy growth. Solar stocks also fell after the draft release.