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The bill temporarily suspends a clean electricity production tax credit to boost near‑term Treasury receipts for Strategic Petroleum Reserve replenishment—improving short‑term energy security and fiscal receipts while raising costs for producers and consumers and weakening incentives for clean energy deployment.
Taxpayers and national energy security: suspending the clean electricity production tax credit for two years increases near-term Treasury receipts that are directed to replenish and boost the Strategic Petroleum Reserve, strengthening U.S. emergency fuel stocks.
Taxpayers/fiscal posture: temporarily pausing the credit reduces near‑term forgone revenue transfers (i.e., lowers near‑term tax expenditures), freeing Treasury resources that can be used now rather than representing permanent spending.
Middle‑class families and other electricity consumers may face higher retail electricity prices if producers pass the increased tax costs through, raising household energy bills.
Utilities, clean‑energy developers, and investors lose a two‑year financial incentive for clean electricity, which may slow deployment of renewable generation and hinder near‑term decarbonization progress.
Electricity producers (including utilities and smaller energy firms) face higher tax liabilities for two years because they cannot claim the clean electricity production credit, reducing their after‑tax returns and cash flow.
Based on analysis of 1 section of legislative text.
Suspends the clean electricity production tax credit for electricity produced Oct 1, 2025–Sep 30, 2027 and directs the added Treasury revenue to the Strategic Petroleum Reserve Petroleum Account.
Suspends the federal clean electricity production tax credit for electricity produced between October 1, 2025 and September 30, 2027. The Treasury must calculate the added tax revenue from that pause and deposit an equal amount into the Strategic Petroleum Reserve Petroleum Account.
Introduced March 20, 2026 by Thomas Bryant Cotton · Last progress March 20, 2026