WASHINGTON, D.C. — In a narrow 215–214 vote, the U.S. House of Representatives approved a sweeping budget bill on June 1, 2025, that proposes significant changes to federal clean energy incentives. The legislation, known as the “One Big Beautiful Bill Act,” aims to phase out tax credits for wind and solar energy projects starting in 2029. Under the proposed bill, projects must begin construction within 60 days of the bill becoming law and be operational by 2028 to qualify for existing credits.
These clean energy tax credits, initially introduced in 1992 as temporary measures, have been extended multiple times over the years. Proponents of the bill argue that eliminating these subsidies will help restore fiscal balance and reduce inflated electricity rates. They cite high costs associated with projects like Empire Wind as examples of taxpayer-funded initiatives that have become increasingly expensive.
Opponents, including leaders from New York and New Jersey, express concern over the potential economic impact of removing these subsidies. They emphasize the role of clean energy projects in job creation and economic growth, particularly in regions that have benefited from renewable energy investments.
The bill now moves to the Senate, where it is expected to face further debate and potential amendments. Moderate Republican senators have already indicated opposition to the early termination of green energy tax credits, suggesting that some provisions may be revised before final passage.
As the legislative process continues, stakeholders from various sectors, including the renewable energy industry and fiscal policy advocates, will be closely monitoring developments. The outcome of this bill could have lasting implications for the future of clean energy initiatives and the broader U.S. energy landscape.
