Sponsors
The bill raises federal revenue and boosts Strategic Petroleum Reserve funding by suspending the clean electricity production tax credit for two years, but does so at the cost of slowing clean energy investment, increasing financing costs and electricity prices, reducing near-term emissions and health benefits, and limiting federal budget flexibility.
Taxpayers nationwide: Federal receipts increase because the clean electricity production tax credit is suspended for FY2026–FY2027, raising Treasury revenue.
Taxpayers and energy system operators: Revenue from the suspension is directed to the Strategic Petroleum Reserve (SPR) Petroleum Account, increasing funds available for SPR operations or oil purchases.
Developers and owners of clean electricity projects: They lose tax benefits for two years, reducing project cash flows, likely delaying or cancelling projects and increasing financing costs due to greater policy uncertainty.
Electricity consumers (especially middle-class families and taxpayers): Slower deployment of low-cost renewable capacity could keep power prices higher than they otherwise would be over time.
Communities and public health: Pausing incentives for clean electricity for two years could reduce near-term emissions reductions and the associated health benefits from cleaner air.
Based on analysis of 1 section of legislative text.
Introduced March 20, 2026 by Thomas Bryant Cotton · Last progress March 20, 2026
Suspends the clean electricity production tax credit for electricity produced from October 1, 2025 through September 30, 2027, and requires the Treasury to deposit the additional revenue from that suspension into the Strategic Petroleum Reserve (SPR) Petroleum Account. The change is temporary (two fiscal years) and redirects increased federal receipts resulting from the suspension to finance SPR petroleum account deposits.