Federal subsidies for wind and solar projects would see bigger cuts in the latest version of Senate Republicans‘ One Big Beautiful Bill Act, as Congress races to get the legislation on President Donald Trump’s desk.
Senate Republicans released updated text for the sweeping tax and spending legislation late Friday. The new bill looks far more similar to the version passed in the House last month, with accelerated phase-outs for clean energy tax credits.
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The more aggressive cuts to clean energy, while in line with Trump’s priorities, could make the overall bill a tougher vote for some senators who have worried that the rollbacks could imperil projects already underway across the country.
The new text specifically slashes federal incentives for wind and solar projects that are not “placed in service,” meaning they are operating and plugged into the grid, by the end of 2027.
Originally, the Senate version of the bill provided a slower phase-out of these credits, starting in 2026 and ending by 2028. It also used language detailing that projects only needed to have begun construction by 2028 to qualify for the credits.
As before, the Senate bill targets electric vehicles by terminating tax credits for them. Previously, Republicans sought to end the credit 180 days after the legislation was signed into law. The updated text would cut the credit by the end of September.
Developers of clean hydrogen projects, though, would find some relief under the updated text, as it would extend subsidies for clean hydrogen projects to January 2028. Previously, projects would have had to begin construction this year to qualify.
Other changes include adding a new tax incentive for certain advanced nuclear projects, expanded funding for a new energy dominance loan program with the Energy Department, and a new tax on solar and wind projects that fail to meet restrictions on the use of Chinese materials.
Several provisions in the new text remain the same, including support for the nuclear and geothermal industries and the ability for project developers to use transferability. This allows companies to sell tax credits to a third party.
It also still includes Sen. Mike Lee’s (R-UT) controversial proposal to sell tracts of public lands to help pay for Trump’s tax cuts and increase housing development in the West.
The proposal, which was modified last week after criticism from both Democrats and Republicans, mandates the sale of as much as 1.2 million acres of land managed by the Bureau of Land Management.
The sales must be limited to tracts located within 5 miles of a population center and cannot include land managed by the U.S. Forest Service, which was included in the original proposal.
Republicans have been facing increasing pressure from the White House to get the legislation on Trump’s desk by Friday.
While the president had previously broadly stayed out of discussions on what the bill would include, he pressured the GOP via social media to cut back on the clean energy tax credits faster than originally proposed.
Three people familiar with the legislation negotiations also told Politico this week that Trump was directly pressing Senate Majority Leader John Thune (R-SD) to crack down on wind and solar subsidies.
REPUBLICANS RELEASE UPDATED SENATE TEXT AHEAD OF ‘BIG BEAUTIFUL BILL’ VOTE
Trump’s direct involvement complicates efforts from other Republicans to ensure a gentler phase-out of the credits so as not to disrupt the market or planned projects and investments.
The Senate could vote on the updated package as soon as Sunday before sending it back to the House. There, it still faces an uphill battle to pass as some critical Republicans, including Rep. Ryan Zinke (R-MT), have said they adamantly oppose some provisions, including the public land sales.