Sponsors (8)
Introduced May 13, 2025 by Josh Brecheen · Last progress May 13, 2025
The bill sharply simplifies the tax code and reduces federal tax expenditures by repealing many niche energy, fuel, vehicle, and efficiency credits after 2025, but the trade‑off is higher costs and weaker incentives for clean energy, fuels, vehicles, manufacturing, and infrastructure—slowing decarbonization, raising short‑ and long‑term costs for producers and many households, and creating transitional uncertainty.
Most taxpayers and the IRS: the bill removes many niche credits and dozens of cross‑references, simplifying filings, reducing audit and administrative burdens, and lowering compliance complexity for filers and the Treasury.
Federal finances/public budget: eliminating a range of refundable, production, and investment credits after Dec 31, 2025 modestly reduces projected federal outlays and lowers near‑term deficit pressure or frees budget room for other priorities.
Some taxpayers/fuel producers: repeal of the petroleum/environmental excise (and related provisions) reduces certain excise costs that had been imposed on fuel producers and could modestly lower specified excise burdens.
Utilities, energy producers, builders, vehicle buyers, homeowners, and many small businesses: lose a broad set of federal tax incentives for renewable power, carbon capture, clean hydrogen, nuclear, clean fuels, advanced manufacturing, vehicle electrification, residential and commercial energy efficiency, and sustainable aviation fuel after Dec 31, 2025, making projects and purchases more costly.
The general public and future generations: repeal of many climate and clean‑energy incentives is likely to slow deployment of low‑carbon technologies (renewables, CCS, hydrogen, SAF, EVs, efficiency), reducing near‑term emissions reductions and public‑health/climate benefits.
Middle‑ and low‑income households and consumers: face higher out‑of‑pocket costs because incentives that lowered purchase or installation prices for electricity, fuels, EVs (including used EVs), home upgrades, and alternative fuels are removed, reducing affordability and access to clean technologies.
Based on analysis of 24 sections of legislative text.
Repeals a broad set of federal tax credits and deductions for clean energy, vehicles, fuels, and efficiency, generally effective after Dec 31, 2025.
Repeals a broad set of federal tax credits, deductions, and related statutory references that support clean energy, low‑carbon fuels, electric and clean vehicles, advanced manufacturing, and energy efficiency. Most repeals take effect for property placed in service, facilities placed in service, vehicles acquired, fuel produced/used, or taxable years beginning after December 31, 2025 (some conforming changes effective January 1, 2026). The changes remove production and investment tax credits (including the production tax credit and investment tax credit family), credits for carbon capture, clean hydrogen, nuclear zero‑emission power, clean fuels and clean electricity, vehicle and refueling property credits, residential and commercial efficiency incentives, and several biofuel and sustainable aviation fuel incentives, plus a repeal of a petroleum tax subchapter and other related tax provisions. The bill makes many conforming edits across the Internal Revenue Code and certain federal statutes to delete cross‑references and adjust related rules.