The Senate Just Put Clean Energy for AI in the Crosshairs

The US Senate recently passed a budget megabill that includes significant setbacks for renewable energy in the United States. Key provisions in the bill end tax credits for wind and solar projects placed in service after 2027, jeopardizing hundreds of planned clean energy projects nationwide. This move comes alongside other climate-related setbacks, such as new tax credits for coal and the sunsetting of electric vehicle tax credits. The original Senate bill was even harsher, proposing an excise tax on wind and solar businesses sourcing materials from certain foreign countries, including China, which would have severely damaged the industries. Although the final version removed this excise tax, it still limits tax credits to projects starting construction within the next year, creating uncertainty and financial risk for clean energy investments. The bill’s passage has drawn criticism from a broad coalition including environmentalists, energy analysts, labor unions, Silicon Valley leaders, and some Senate Republicans. Experts warn that cutting these tax credits will hinder the expansion of clean energy needed to meet growing electricity demands