Sponsors (8)
The bill simplifies the tax code and raises federal receipts by repealing a wide range of energy and fuel tax credits (and by repealing petroleum excise taxes lowers pump prices), but the trade‑off is substantially reduced incentives for clean energy and fuels that risk higher long‑run energy costs for consumers, slower decarbonization, disrupted projects and financing, and job losses in clean‑energy supply chains.
Taxpayers and the federal budget: eliminating many targeted energy and fuel tax credits reduces federal tax expenditures and would increase federal revenue or lower projected deficits.
Taxpayers, IRS, and tax preparers: removing a large set of credits and related cross‑references simplifies the Internal Revenue Code and lowers administrative and compliance burdens for taxpayers and the IRS.
Drivers and purchasers of petroleum products: repealing the petroleum excise taxes will lower per‑unit petroleum/fuel excise costs at the pump beginning Jan 1, 2026, potentially reducing consumer fuel prices.
Households, businesses, and the U.S. energy transition: eliminating a broad set of credits (for renewables, nuclear, carbon capture, hydrogen, advanced manufacturing, EVs, energy efficiency, SAF, biofuels, and related incentives) will significantly reduce investment incentives and is likely to slow clean energy deployment and national decarbonization efforts.
Electricity and fuel consumers: utilities, fuel producers, and project owners losing tax credits will likely pass higher after‑tax costs through the supply chain, raising electricity, heating, and fuel prices for households and businesses.
Homeowners, small businesses, and installers: repeal of residential, home‑improvement, investment, and refueling property credits and deductions increases out‑of‑pocket costs and reduces demand for energy‑saving and clean‑energy upgrades.
Based on analysis of 24 sections of legislative text.
Repeals a broad set of federal tax credits and incentives for clean energy, clean fuels, clean vehicles, energy efficiency, and the petroleum tax regime.
Introduced May 13, 2025 by Josh Brecheen · Last progress May 13, 2025
Repeals a wide set of federal tax credits and incentives for clean energy, clean fuels, clean vehicles, energy efficiency, advanced manufacturing, hydrogen, nuclear, and related production and investment preferences, and removes the federal petroleum tax regime. The measure removes production and investment tax credits, residential and commercial energy credits/deductions, fuel and aviation fuel credits, clean-vehicle credits (new and used), and various elective payment and credit-transfer rules. Most repeals and conforming changes apply to production, sales, acquisitions, property placed in service, or expenditures occurring after December 31, 2025 (with a few conforming changes effective January 1, 2026). The changes are primarily technical amendments across the Internal Revenue Code that eliminate those tax incentives and adjust cross-references and related tax administration rules.