U.S. May Eliminate Tax Credits for Solar and Wind Energy

U.S. May Eliminate Tax Credits for Solar and Wind Energy

On June 16, a draft budget bill introduced in the U.S. Senate proposed a full phase-out of tax credits for solar and wind power generation by 2028. At the same time, tax incentives for hydropower, nuclear, and geothermal energy would be extended through 2036.

The Senate bill is part of a broader package of Republican budget initiatives. The document also includes provisions allowing the transfer or sale of tax credits, which partially mitigates the restrictions outlined in the version of the bill previously passed by the House of Representatives.

Despite the uncertainty, Portuguese company EDP Renováveis (EDPR), the world’s fourth-largest wind energy producer, has confirmed it will maintain its U.S. market plans. On June 17, EDPR’s CEO announced that the company intends to install up to 1.75 GW of new wind power capacity in the United States by the end of 2026.

Sources:
Reuters, June 16, 2025 – Senate Budget Proposal
Reuters, June 17, 2025 – EDPR Statement

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