The US Senate Finance Committee has introduced a bill that would bring forward the phase-out of tax credits for solar and wind energy projects. Under the current Inflation Reduction Act, which was passed during President Joe Biden’s tenure, these tax credits were only due to be gradually phased out starting in 2032. However, the Republican proposal led by Senator Mike Crapo (picture) would reduce subsidies for solar and wind energy by 60 per cent by 2026, with full phase-out by 2028. In contrast, full subsidies would apply to hydro, nuclear and geothermal power plants until 2033, with a subsequent phase-out by 2036.
The Solar Energy Industries Association (SEIA) views the draft as a »threat to one of the greatest economic success stories in American history«. Abigail Ross Hopper, the association’s president and CEO, comments: »As drafted by the Senate Finance Committee, this proposal would pull the plug on homegrown solar energy and decimate the American manufacturing renaissance. This bill makes it harder to do business in America for U.S. manufacturers and small businesses and will undoubtedly lead us to an energy-strained economy with higher electric bills over the next five years.«
© PHOTON
