The legislative text for the One Big Beautiful Bill Act, released Monday by Republicans on the Senate Finance Committee, includes a slower phase-out of clean energy credits than the House-passed version of the bill.

The legislation would roll back energy tax credits created or expanded by the 2022 Inflation Reduction Act, which Democrats passed and former President Joe Biden signed, authorizing hundreds of billions of dollars in tax credits for clean energy.

Recommended Stories

• Trump fires Democratic member of Nuclear Regulatory Commission
• California braces for brutal summer of wildfires
• Trump administration utilizing Obama-era program to boost critical minerals supply

While the Senate GOP legislation would do away with many of those green subsidies to offset the revenues lost from tax cuts in the bill, it would do so less aggressively than the House bill did. That could create conflict with hard-line House Republicans, who insisted on steeper cuts to the subsidies.

Specifically, the Senate Finance Committee text provides for a slower phase-out of the Clean Electricity Production Credit and Clean Electricity Investment Credit for electricity generated by wind or solar technologies.

The PTC and ITC begin phasing out for wind and solar projects that are started in 2026, and are totally phased out by 2028. Hydropower, nuclear, and geothermal, though, get much slower phase-outs, with credits partially available as late as 2035.

In comparison, the House bill requires companies to begin construction of projects within 60 days of the bill’s enactment to be eligible for the phase-out of credits, although it excepts nuclear power.

The PTC and ITC had been referred to as “tech-neutral” credits because they subsidize the production of and investment in clean electricity regardless of its source, based on zero or net-negative greenhouse gas emissions.

“This bill prevents an over-$4 trillion tax hike and makes the successful 2017 Trump tax cuts permanent, enabling families and businesses to save and plan for the future,” Senate Finance Committee Chairman Mike Crapo (R-ID) said.

“The legislation also achieves significant savings by slashing Green New Deal spending and targeting waste, fraud, and abuse in spending programs while preserving and protecting them for the most vulnerable,” Crapo added.

Meanwhile, similar to the House version, the committee’s text seeks to terminate credits related to electric vehicles, energy efficiency, and hydrogen production.

“Canceling these credits would increase monthly bills for American families and businesses,” said Steven Nadel, executive director of the American Council for an Energy-Efficient Economy, referring to slashes to energy efficiency credits.

SENATE GOP RELEASES TAX PLAN WITH SMALLER CHILD TAX CREDIT BOOST

“Why would we stop helping families save energy when prices are going up and up? Americans didn’t vote for higher energy bills,” Nadel said.

Sen. Ron Wyden (D-OR), a key Democratic proponent of tech-neutral clean energy credits, said in a statement that the GOP bill would “endanger hundreds of thousands of clean energy jobs.”