Final GOP bill kneecaps renewables and hydrogen, but lifts nuclear and geothermal

The recently passed Republican reconciliation act, approved by a narrow 218-214 vote and awaiting President Donald Trump’s expected signature, significantly rolls back key provisions of the Inflation Reduction Act (IRA) related to clean energy incentives. The bill reduces or eliminates tax credits for solar, wind, and clean hydrogen projects, while preserving some benefits for nuclear, geothermal, and battery storage technologies through 2033. Solar and wind developers must now either connect projects to the grid by the end of 2027 or begin construction within 12 months of the bill’s passage to qualify for tax credits, tightening timelines compared to previous legislation. This shift is likely to impact sectors reliant on rapid deployment of renewable energy, such as data centers and climate tech startups, with green hydrogen companies facing particularly steep challenges as their tax credits are set to expire by 2027—five years earlier than under the IRA. While geothermal, nuclear, and battery storage incentives remain largely intact, new restrictions related to “foreign entities of concern” could