H.R. 2838

119th CONGRESS 1st Session

To amend the Internal Revenue Code of 1986 to phase-out the clean electricity production and investment credits with respect to wind and solar energy.

IN THE HOUSE OF REPRESENTATIVES · April 10, 2025 · Sponsor: Ms. Fedorchak · Committee: Committee on Ways and Means

H.R. 2838

SEC. 1. Short title

This Act may be cited as the Ending Intermittent Energy Subsidies Act of 2025.

SEC. 2. Termination of transferability of portion of clean electricity credits attributable to wind or solar energy

(a) Clean electricity production credit
- of the Internal Revenue Code of 1986 is amended to read as follows: Section 6418(f)(1)(A)(vii)
  - (vii) so much of the clean electricity production credit determined under section 45Y as is not attributable to electricity produced using solar or wind energy.
(b) Clean electricity investment credit
- Section 6418(f)(1)(A)(xi) of such Code is amended to read as follows:
  - (xi) so much of the clean electricity investment credit determined under section 48E as is not allowed with respect to a qualified facility (as defined in such section) which is used for the generation of electricity using wind or solar energy.
(c) Effective date
- The amendment made by this section shall apply to taxable years beginning after the date of the enactment of this Act.

SEC. 3. Phase-out of clean electricity production credit with respect to solar and wind power

(a) In general
- of the Internal Revenue Code of 1986 is amended by adding at the end the following new paragraph: Section 45Y(d)
  - (4) Special rule for solar and wind energy
    - In the case of electricity produced from solar or wind energy, the amount of the credit determined under subsection (a) (determined without regard to this paragraph) shall be equal to the product of the amount otherwise so determined, multiplied by—
      - in the case of electricity produced during the first calendar year beginning after the date of the enactment of the , 80 percent,
      - in the case of electricity produced during the second calendar year beginning after the date of the enactment of the , 60 percent,
      - in the case of electricity produced during the third calendar year beginning after the date of the enactment of the , 40 percent,
      - in the case of electricity produced during the fourth calendar year beginning after the date of the enactment of the , 20 percent, or
      - in the case of electricity produced after such fourth calendar year, zero percent,
(b) Effective date
- The amendments made by this section shall apply to electricity produced after the date of the enactment of this Act.

SEC. 4. Phase-out of clean electricity investment credit

(a) In general
- of the Internal Revenue Code of 1986 is amended by adding at the end the following new paragraph: Section 48E(e)
  - (4) Special rule for solar and wind energy
    - The amount of the clean electricity investment credit under subsection (a) with respect to any qualified investment in a qualified facility which generates electricity using wind or solar energy shall be equal to the product of—
      - the amount of the credit determined under subsection (a) without regard to this subsection, multiplied by
      - in the case of a facility placed in service—
        
        (i) during the first calendar year beginning after the date of the enactment of the , 80 percent,
        
        (ii) during the second calendar year beginning after the date of the enactment of the , 60 percent,
        
        (iii) during the third calendar year beginning after the date of the enactment of the , 40 percent,
        
        (iv) during the fourth calendar year beginning after the date of the enactment of the , 20 percent, or
        
        (v) after such fourth calendar year, zero percent,
(b) Effective date
- The amendments made by this section shall apply to property placed in service after the date of the enactment of this Act.