Senate reverses course, proposing harsh tax on renewables
This story was originally published on Utility Dive. To receive daily news and insights, subscribe to our free daily Utility Dive newsletter.
After initially proposing a softened version of the Inflation Reduction Act cuts in the House's proposed budget legislation, the Senate's Republican leadership flip-flopped this weekend and proposed not only stiff IRA cuts but an outright tax on wind and solar projects.
The bill now terminates the 45Y clean energy production tax credit and 48E clean energy manufacturing credit for wind and solar projects after 2027, and levies a penalty against new wind and solar projects that come online after 2027 unless they can completely disentangle their supply chains from China.
It would also end the 25E, 30D, and 45W electric vehicle credits after September, and the 25D residential solar credit after this year.
Former Trump senior adviser Elon Musk on Saturday said the Senate's latest draft of the bill 'will destroy millions of jobs in America and cause immense strategic harm to our country!'
'Utterly insane and destructive,' he said in a post on X, formerly Twitter. 'It gives handouts to industries of the past while severely damaging industries of the future.'
The legislation was released just after midnight on Friday and advanced in the Senate with a 51 to 49 vote late Saturday night. The two Republican holdouts were Sen. Rand Paul, R-K.Y., and Sen. Thom Tillis, R-N.C.
'When you rush a bill and you don't think through the implementation, you don't get it right,' Tillis said in a Senate floor speech on Sunday, warning that energy shortages could occur if the bill is passed in its current state.
President Trump responded to Tillis's defection with Saturday posts on Truth Social in which he vowed to meet with Tillis's potential primary challengers and accused him of loving 'China made windmills that will cost a fortune, ruin the landscape, and produce the most expensive Energy on Earth.' Tillis announced Sunday that he is not seeking reelection.
Senators plan to resume voting Monday, as Republicans are still aiming to get the legislation to Trump's desk by his July 4 deadline.
In a Saturday release, Solar Energy Industries Association President and CEO Abigail Ross Hopper called the bill a 'direct attack on American energy, American workers, and American consumers.'
'If this bill passes, Americans will pay the price — literally,' she said. 'Power bills will rise. Factory jobs will vanish ... All while we become more dependent on foreign energy and more vulnerable to blackouts.'
American Clean Power Association CEO Jason Grumet said Saturday, 'These new taxes will strand hundreds of billions of dollars in current investments, threaten energy security, and undermine growth in domestic manufacturing and land.' He added that those hit hardest would be rural communities that would have been the greatest beneficiaries of clean energy investment.
Neil Bradley, chief policy officer at the U.S. Chamber of Commerce, praised the bill overall as 'strong' and 'pro-growth,' but added: 'That said, taxing energy production is never good policy, whether oil [and] gas or, in this case, renewables. Electricity demand is set to see enormous growth [and] this tax will increase prices.' He recommended the additional tax be removed.
Liz Burdock, president and CEO of Oceantic Network, noted in a release that the Senate had 'promised a course-correction; instead offered a bill that is overall just as harsh as the House counterpart.'
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Wall Street Journal
15 minutes ago
- Wall Street Journal
Heard on the Street Recap: Wild Quarter
Traders work on the floor of the New York Stock Exchange on Monday. (Timothy A. Clary/AFP/Getty Images)
Yahoo
16 minutes ago
- Yahoo
Smucker's Makes Final Decision on Controversial Ingredient
We're moving away from synthetic dyes in food. J.M Smucker Company announced that they will be removing FD&C colors from "all consumer food products by the end of calendar year 2027." The FD&C Act was enacted by the Food and Drug Administration in 1938 by President Franklin D. Roosevelt. It's designed to remove unnecessary color additives in food by implementing safety guidelines (such as understanding which types of foods synthetic colors can be used in, setting maximum amounts, and determining how it should be declared on the food label). Smucker's said that this ingredient change will impact its "sugar-free fruit spreads and ice cream toppings, as well as certain products from its Hostess brand portfolio." Twinkies and Snoballs snack cakes, for example, are made with Red 40. The company added that most of their consumer foods are already free of FD&C colors, including the majority of the products available in kindergarten-to-12th grade schools."Throughout our 128-year history, we have successfully evolved our portfolio and product offerings based on shifts in consumer preferences," CEO Mark Smucker said in the statement. "Our commitment to remove FD&C colors from our sugar-free fruit spreads, ice cream toppings, and sweet baked goods products represents the latest example of our desire to evolve and our ability to continue to innovate to deliver on the expectations of our consumers." RELATED: J.M. Smucker is joined by Nestlé USA and Kraft Heinz in the effort to remove artificial dyes from their United States products. Kraft Heinz put out a press release on June 17, stating that they will be abiding by the FD&C colors "effective immediately." The company has already been making steps towards this initiative after removing artificial colors, preservatives, and flavors from Kraft Mac & Cheese in 2016. In the same vein, Nestlé announced last week that they will remove synthetic colors in its food and beverage portfolio by Makes Final Decision on Controversial Ingredient first appeared on Men's Journal on Jun 30, 2025
Associated Press
20 minutes ago
- Associated Press
Philadelphia city workers strike after contract talks fail
PHILADELPHIA (AP) — Nearly 10,000 city workers in Philadelphia who collect trash, answer 911 calls, maintain city pools and perform other jobs went on strike Tuesday after contract negotiations broke down. District Council 33 President Greg Boulware said the city hadn't agreed to a high enough wage increase, WPVI-TV reported. Mayor Cherelle Parker said the city would suspend residential trash collection, close some city pools and shorten recreation center hours, but vowed to keep the city running. Police and firefighters are not on strike. Parker, a pro-labor Democrat, promised that Fourth of July celebrations in the nation's birthplace would go on as usual. 'Keep your holiday plans. Don't leave the city,' she said at a Monday afternoon news conference that followed hours of last-minute negotiations. City officials urged residents to be patient and not hang up should they need to call either 911 or the city's non-emergency helpline. They said they would open drop-off sites for residential trash. Parker said she had offered raises that amount to 13% over her four-year term and added a fifth step to the pay scale to align with other unionized workers. District Council 33 of the American Federation of State, County and Municipal Employees is the largest of four unions representing city workers. 'We believe it's a fair offer and still fiscally responsible for the people of this city,' said Parker, who took office last year. Union leaders, in their initial contract proposal, asked for 8% annual raises each year of the three-year contract, along with cost-of-living hikes and bonuses of up to $5,000 for those who worked through the pandemic. The union also asked the city to pay the full cost of employee health care, or $1,700 per person per month. 'District Council 33's members contribute as much blood, sweat and tears as does anyone else,' they said in a demand letter. 'We all make the city work. Our contract must reflect that reality.' In November, the city transit system averted a strike when the parties agreed to a one-year contract with 5% raises.
