Sponsors
The bill trades broad tax‑code simplification and modest federal budget savings from repealing many energy and clean‑transport incentives for substantially reduced policy support for clean energy, transportation, and efficiency — likely slowing decarbonization, raising costs and financing risks for affected projects and households, and shifting distributional impacts onto consumers and cleaner‑technology sectors.
Most taxpayers, filers, and the IRS: the bill repeals many specialized credits and related cross-references, substantially simplifying the tax code and reducing compliance and administrative burdens.
All taxpayers: eliminating a large set of refundable/credit tax expenditures reduces projected federal outlays and modestly improves federal revenue/deficit metrics relative to continuing those credits.
Drivers, households, and businesses that buy fuel: repeal of the federal petroleum excise tax can lower gasoline and diesel prices and reduce fuel-related costs for consumers and small businesses.
Households, electricity customers, and the public: repealing many clean‑energy, low‑carbon, and efficiency tax incentives will likely slow deployment of renewable energy, carbon capture, clean hydrogen, nuclear, clean fuels, and energy‑efficient buildings — weakening near‑ and medium‑term U.S. emissions reductions and associated public health benefits.
Utilities, project developers, homeowners, and vehicle buyers: losing a wide array of credits raises after‑tax costs for renewable projects, clean fuels, energy-efficient buildings and homes, clean vehicles, charging/refueling equipment, and SAF — increasing consumer prices in some markets and reducing private investment.
Project sponsors, investors, and lenders: removal of numerous tax incentives and elective monetization mechanisms will worsen project economics for many clean‑energy and advanced manufacturing projects, increasing financing costs, raising risks of delays, cancellations, or stranded investments.
Based on analysis of 24 sections of legislative text.
Repeals a broad set of federal clean-energy, clean-fuel, EV, efficiency, carbon-capture, and sustainable aviation fuel tax credits and related payment/transfer rules, plus a petroleum-tax chapter.
Introduced May 13, 2025 by Mike Lee · Last progress May 13, 2025
Repeals a broad set of federal tax incentives and special payment rules for clean energy, clean fuels, electric vehicles, energy-efficiency, carbon capture, and sustainable aviation fuel, and removes a federal petroleum tax chapter. Most repeals and related conforming changes take effect for property, production, purchases, or taxable years beginning after December 31, 2025 (with a few changes effective January 1, 2026). The bill removes both production- and investment-style tax credits, consumer credits, manufacturer/production credits, and the elective direct-payment/transfer mechanics that allowed some taxpayers to receive cash for credits.