Sponsors (8)
The bill trades a simpler tax code and smaller federal tax expenditures for the widespread removal of clean‑energy, vehicle, fuel, and manufacturing tax incentives—reducing government complexity and outlays but raising costs, investment risk, and likely slowing deployment of low‑carbon technologies and related jobs and services.
All taxpayers (individuals, businesses, and tax preparers) and the IRS face a materially simpler tax code and lower compliance/audit burden because the bill repeals many niche clean-energy and related tax credits and removes numerous cross‑references and special rules.
Federal budget/future taxpayers benefit from reduced projected tax expenditures—repealing the credits lowers outlays or tax expenditures after 2025, modestly improving projected receipts or deficit pressure.
People who buy or place property or equipment in service before Jan 1, 2026 (and some existing projects) generally keep the current credits or avoid phased/overlapping credit complexity, reducing immediate disruption for near-term transactions.
Homeowners, energy companies, manufacturers, and vehicle/fuel producers lose a wide range of renewable‑energy, efficiency, clean‑fuel, vehicle, manufacturing, hydrogen, carbon‑capture, and SAF tax incentives—raising project and production costs and likely slowing deployment of low‑carbon technologies and related jobs.
Developers, manufacturers, and small businesses that planned investments assuming these credits face increased financial risk—sunk planning costs, lower returns, harder financing, and a meaningful risk of postponed or canceled projects.
Consumers and households (including low‑ and middle‑income buyers) may face higher prices or reduced access to cheaper clean options—higher electricity, fuel, vehicle, and home‑upgrade costs and reduced affordability of used EVs and residential renewables.
Based on analysis of 24 sections of legislative text.
Repeals many clean‑energy, efficiency, vehicle, biofuel, SAF, and petroleum tax credits and removes related cross‑references, mostly effective for post‑2025 activity.
Official title: To amend the Internal Revenue Code of 1986 to repeal green energy tax subsidies.
Introduced May 13, 2025 by Josh Brecheen · Last progress May 13, 2025
Repeals a wide array of federal tax credits and related statutory references for clean energy, energy-efficiency, clean fuels, electric and alternative-fuel vehicles, advanced manufacturing energy incentives, certain biofuel and sustainable aviation fuel credits, and parts of the petroleum tax subchapter. Most repeals and removals apply prospectively to property, fuel, facilities, or vehicles placed in service, produced, sold, acquired, or used after December 31, 2025 (many changes effective January 1, 2026). The bill also makes numerous conforming edits across the Internal Revenue Code and selected U.S. statutes to remove cross-references and adjust punctuation and paragraph structure caused by those repeals. The package is narrowly focused on tax-law repeal and cleanup: it eliminates multiple production and investment tax credits (including residential, commercial, hydrogen, carbon sequestration, clean electricity, clean fuel, clean vehicle credits, and others), repeals certain petroleum-related tax subchapters, and withdraws refundable or excise-linked fuel credits and refunds (biodiesel, renewable diesel, alcohol fuels, SAF). The result is a substantial rollback of federal tax incentives aimed at low-carbon energy, efficiency, and alternative-fuel deployment starting after calendar year 2025.