The US Senate’s upcoming budget bill aims to eliminate wind and solar tax credits from 2005 and introduce a new tax on projects with Chinese components starting after 31 December 2027.
The US Senate’s latest budget bill, set for a potential vote soon, eliminates tax credits for wind and solar energy established in 2005.
It also introduces energy measures and proposes implementing a new tax on such projects after 31 December 2027 for the first time, if these contain components originating from China, according to renewable energy advocates, on 28 June 2025.
The bill also speeds up the elimination of clean energy manufacturing tax credits, which have drawn billions in investments across the United States, particularly in Republican-led states, while providing new tax breaks for coal production.
Renewable energy advocates criticised the changes, warning of higher energy costs and reduced electricity capacity amid growing demand. Meanwhile, opponents of green energy, including President Donald Trump, praised the bill for ending renewable energy incentives.
On 28 June, Senate Budget Committee Chairman Lindsey Graham released the updated text of the budget reconciliation bill, “One Big Beautiful Bill,” which advanced with a 51-49 vote.
The bill was read in full on 29 June, followed by up to 20 hours of debate and amendments. Key amendments include a temporary increase in the SALT deduction cap to USD 40,000 and an accelerated phase-out of certain green energy credits.
Earlier, the US House Ways and Means Committee passed the Big, Beautiful Bill by the House of Representatives on 22 May 2025.
