Energy Freedom Act

This bill would end many federal tax breaks for clean energy, cleaner vehicles, and energy‑saving buildings. It repeals credits for home energy upgrades and residential clean energy systems; new, used, and commercial clean vehicles; equipment for refueling alternative‑fuel vehicles; builder incentives for efficient new homes; and the energy‑efficient commercial buildings deduction .

It also eliminates credits for electricity produced from certain renewable resources, zero‑emission nuclear power, clean hydrogen, carbon capture, clean fuel production, and advanced manufacturing of energy components, and it removes the general energy credit and the clean electricity investment credit. It ends incentives for biodiesel, renewable diesel, and sustainable aviation fuel, repeals a tax on petroleum, and ends elective payment and transfer of energy tax credits .

• Who is affected: Homeowners; people buying clean vehicles; builders and businesses that improve buildings; electricity generators and fuel producers; and manufacturers of clean‑energy parts .
• What changes: These tax credits and deductions would no longer be available; elective payment and transfer of credits would end; and a tax on petroleum would be repealed.
• When: In most cases, the changes apply to property placed in service, vehicles acquired, or fuel produced after December 31, 2025; some take effect January 1, 2026 .