Senate GOP bill spares nuclear and geothermal energy while hammering wind and solar

Senate Republicans have introduced a budget reconciliation bill that significantly scales back renewable energy incentives established under the Inflation Reduction Act (IRA), particularly targeting solar, wind, and hydrogen energy. The bill proposes ending residential solar tax credits within 180 days of enactment and disqualifying solar leasing companies from receiving credits, which would severely impact the residential solar market. Commercial wind and solar projects would face a shortened timeline for tax credits, with full credits only available for projects starting within six months of the bill’s signing and phased reductions thereafter, disappearing entirely after 2027. Hydrogen tax credits would also end this year, creating additional challenges for hydrogen startups. In contrast, the bill largely spares geothermal, nuclear, hydropower, and long-duration energy storage technologies, with only slight extensions to their tax credit phase-outs. Carbon capture incentives would be modified to eliminate distinctions based on the use of captured carbon, making all projects eligible for the same credit level. Notably, the inclusion of long-duration energy storage could