Sponsors (4)
Repeals a set of federal energy and investment tax credits and makes conforming edits throughout the Internal Revenue Code.
The bill simplifies and clarifies certain tax administration rules (benefiting taxpayers, governments, and ANCs) at the cost of eliminating multiple energy and investment tax credits—weakening incentives and financing for clean-energy, carbon-capture, and some housing projects while creating short-term implementation burdens.
Taxpayers (including individuals and many businesses) will face simpler tax filing for certain energy and investment matters because the bill removes several overlapping credit provisions and consolidates rules, reducing compliance complexity.
State and local governments will have clearer, more predictable administration for certain refundable/transferable credit elections because the bill clarifies election timing and irrevocability rules under Sec. 6417.
Alaska Native Corporations (ANCs) gain clearer statutory eligibility for Sec. 6417 credit rules through an explicit cross-reference, reducing legal ambiguity for ANC applicants.
Owners and taxpayers (including utilities, energy companies, and small businesses) will face higher tax liabilities and weaker investment incentives because the bill removes multiple energy and investment tax credits.
Renewable energy and carbon-capture projects (and communities counting on their development) will likely see reduced after-tax returns and slower deployment, because loss of production and investment credits lessens project economics.
Recipients that previously relied on refundable or transferable producer credits (including some small businesses and project developers) may lose or face more complicated access to refundability/transferability pathways, reducing cash-flow and financing options.
Based on analysis of 2 sections of legislative text.
Official title: To amend the Internal Revenue Code of 1986 to repeal certain credits.
Introduced January 9, 2025 by Scott Perry · Last progress January 9, 2025
Repeals a broad set of federal energy and investment tax credits and makes many conforming edits across the Internal Revenue Code to remove references and adjust related definitions and cross-references. The bill deletes numerous Section 45 and Section 48 family credits (and related provisions), eliminates those credits from the general business credit computation, and updates multiple tax-code provisions so they read consistently after removal. The changes primarily affect taxpayers that claimed or administer these credits, energy and clean-technology businesses that relied on the credits, and Treasury/IRS systems and guidance that implement credit rules. The measure is a targeted tax-code rewrite with many technical edits and legal redesignations to remove or redirect statutory references to the repealed credits.