Ending Intermittent Energy Subsidies Act of 2025

Bill Number

H.R. 2838

Origin Chamber

House

Congress

119th Congress, Session 1

Policy Area

Taxation

Status

Introduced

Latest Action

2025-04-10: Referred to the House Committee on Ways and Means.

Last Updated

2026-04-15T13:29:06Z

AI-Generated Summary

Purpose

The "Ending Intermittent Energy Subsidies Act of 2025" (H.R. 2838) aims to reduce federal tax incentives for wind and solar energy by gradually eliminating specific clean electricity tax credits. These credits encourage the production and investment in low-carbon energy sources, and the bill targets only wind and solar to limit ongoing subsidies for what the bill describes as "intermittent" energy.

Key Provisions

• Short Title: The legislation is named the "Ending Intermittent Energy Subsidies Act of 2025."
• Termination of Credit Transferability (Section 2): Ends the ability to transfer (or sell) portions of the clean electricity production credit (under Section 45Y of the Internal Revenue Code) and the clean electricity investment credit (under Section 48E) that are linked to wind or solar energy. This applies to taxable years beginning after the bill's enactment.
• Phase-Out of Production Credit (Section 3): For electricity generated from wind or solar, the clean electricity production credit is reduced over four years post-enactment:
• Year 1: 80% of the full credit amount.
• Year 2: 60%.
• Year 3: 40%.
• Year 4: 20%.
• Year 5 and beyond: 0%.

This applies to electricity produced after enactment.

• Phase-Out of Investment Credit (Section 4): For investments in facilities that generate electricity using wind or solar, the clean electricity investment credit is similarly reduced based on when the facility is placed in service (i.e., becomes operational):
• Year 1 post-enactment: 80%.
• Year 2: 60%.
• Year 3: 40%.
• Year 4: 20%.
• Year 5 and beyond: 0%.

This applies to property placed in service after enactment.

Significant Changes to Existing Law

• Amends the Internal Revenue Code of 1986 (specifically Sections 6418, 45Y, and 48E) to exclude wind and solar from transferable clean energy credits and impose a time-based phase-out for these sources.
• Previously, these credits were broadly available without source-specific reductions for wind or solar, allowing full benefits and transferability to support renewable energy projects. The bill introduces targeted reductions, leaving credits intact for other clean energy technologies (e.g., nuclear, geothermal, or hydropower).

Potential Impacts

• Government Agencies: The Internal Revenue Service (IRS) and Department of the Treasury will need to update tax rules, forms, and guidance to implement the phase-out, potentially increasing administrative workload in the short term. It could reduce federal tax expenditures (subsidies) by billions over time, freeing up revenue for other uses.
• Citizens and Businesses: Wind and solar developers and investors may face higher project costs without full credits, slowing new installations and potentially raising electricity prices if renewable growth stalls. Consumers could see indirect benefits if subsidies shift to more reliable energy sources, but environmental groups warn of slower progress on climate goals.
• International Relations: Minimal direct impact, though it may signal a U.S. policy shift away from aggressive renewable support, affecting global climate negotiations or trade in clean energy technologies.

Main Stakeholders Affected

• Renewable Energy Companies: Wind and solar producers and investors, who rely on these credits for project financing and profitability.
• Other Energy Sectors: Fossil fuel, nuclear, and alternative clean energy firms may gain a competitive edge with unchanged or relatively stronger incentives.
• Taxpayers and Consumers: General public, as reduced subsidies could lower overall tax burdens but influence energy prices and environmental quality.
• Environmental and Advocacy Groups: Those promoting clean energy transitions may oppose the bill, while energy independence advocates could support it.

Notable Legal, Constitutional, or Political Implications

• Legal: The changes are straightforward amendments to tax law, likely facing challenges in court if deemed to retroactively affect ongoing projects (though the bill applies prospectively). No violations of equal protection or takings clauses appear evident, as it targets specific energy types without broader discrimination.
• Constitutional: Aligns with Congress's taxing and spending powers under Article I; no First Amendment or due process issues raised.
• Political: Highlights debates over energy policy, subsidies, and climate priorities, potentially dividing along partisan lines (e.g., support from those favoring reduced government intervention in renewables vs. opposition from clean energy proponents). If enacted, it could influence future energy legislation amid ongoing discussions on inflation reduction and energy security.

This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.

Sponsor

Rep. Fedorchak, Julie [R-ND-At Large]

Cosponsors (4)

Rep. Goldman, Craig [R-TX-12], Rep. Palmer, Gary J. [R-AL-6], Rep. Weber, Randy K. Sr. [R-TX-14], Rep. Pfluger, August [R-TX-11]

Recent Actions

• 2025-04-10: Referred to the House Committee on Ways and Means.
• 2025-04-10: Introduced in House
• 2025-04-10: Introduced in House

Bill Versions

• Ending Intermittent Energy Subsidies Act of 2025 — issued 2025-04-10 — PDF (6 pages)