Inflation Reduction Act Clean Energy Tax Credits Rollback

Planned

The United States Senate Committee on Finance has released draft legislation to end or scale back major tax credits for clean energy, solar panels, electric vehicles, and other benefits provided by the 2022 Inflation Reduction Act. The plan includes ending a $7,500 EV tax credit for consumers within 180 days, phasing out tax credits for solar and wind power, and ending tax credits for power sources like nuclear, geothermal, and hydropower by 2036. The legislation would also phase out critical minerals tax credits starting in 2031 and make companies that lease solar energy ineligible for federal tax credits, potentially leading to a decline in the rooftop solar market.