US Clean Energy Sector Eyes Bipartisan Push on Tax Credits as New Congress Convenes

With Democrats set to hold a congressional majority when the new session opens in January, federal energy policy is expected to pivot toward domestic manufacturing incentives and tighter supply chain restrictions, according to PV Magazine USA.

The most promising bipartisan vehicle for the solar industry is an extension of Section 45X tax credits, which currently support US production of solar modules, inverters, and batteries. Under existing law, those incentives begin phasing out after 2029. Analysts say a cross-party deal is achievable if Democrats agree to widen credit eligibility to technologies preferred by Republican lawmakers. Preserving Section 45X is listed as a top priority by the American Clean Power Association (ACP), which sees it as critical to sustaining the domestic supply chain reshoring underway in recent years.

On permitting, a 400-page bipartisan reform bill remains in play. Analyst Whitney Stanko puts the probability of its passage before year-end at around 45%.

Existing restrictions on Chinese equipment, intellectual property, and project financing are widely expected to remain in force. However, Congress may introduce technical amendments to ease compliance requirements around debt and equity structures in project finance.

Separately, the Department of Energy is due to publish guidelines by December 24 on import restrictions covering grid equipment linked to hostile foreign states — a decision the development community is closely watching.

Source: PV Magazine USA