Restoring Energy Market Freedom Act

Bill Number

H.R. 310

Origin Chamber

House

Congress

119th Congress, Session 1

Policy Area

Taxation

Status

Introduced

Latest Action

2025-01-09: Referred to the House Committee on Ways and Means.

Last Updated

2026-05-12T14:29:32Z

AI-Generated Summary

Purpose of the Legislation

The "Restoring Energy Market Freedom Act" (H.R. 310) aims to eliminate specific tax credits in the U.S. tax code that incentivize renewable energy, clean energy production, and related technologies. By repealing these credits, the bill seeks to reduce government subsidies for certain energy sectors, promoting a freer market approach without targeted tax incentives.

Key Provisions

• Repeal of Specific Tax Credits: The bill strikes out entire sections of the Internal Revenue Code (IRC) related to tax credits, including:
• Section 45 (renewable electricity production credit, which provides tax benefits for generating electricity from wind, solar, and other renewables).
• Section 45J (advanced nuclear power facilities credit).
• Section 45Q (carbon oxide sequestration credit, for capturing and storing greenhouse gases).
• Section 45U (nuclear power production credit).
• Section 45V (clean hydrogen production credit).
• Section 45X (advanced manufacturing production credit, for clean energy components).
• Section 45Y (clean electricity production credit).
• Sections 48, 48A, 48B, 48C, 48D, and 48E (investment tax credits for energy property, such as solar, wind, and energy-efficient buildings).
• Amendments to General Business Credit: Updates Section 38 of the IRC to remove references to the repealed credits, renumbering related paragraphs and clauses for consistency.
• Conforming Amendments: Makes technical changes to over a dozen other IRC sections (e.g., Sections 25, 30C, 45K, 45L, 45Z, 49, 50, 56A, 59A, 142, 168, 179D, 409, 501, 6417, and 6418) to eliminate cross-references to the repealed credits. This includes redefining terms like "qualified facility" in Section 45Z to focus on transportation fuels without clean energy ties, and limiting transferable credits under Section 6418.
• Effective Date: The changes apply to taxable years beginning after December 31, 2024, meaning credits can still be claimed for 2024 but not afterward.

Significant Changes to Existing Law

This bill reverses provisions from recent laws, such as the Inflation Reduction Act of 2022, which expanded clean energy incentives to encourage a shift away from fossil fuels. It removes both production credits (for generating energy) and investment credits (for building facilities), effectively ending federal tax support for these activities. Unlike prior laws that added or extended credits, this introduces outright repeals, with conforming fixes to prevent inconsistencies in the tax code.

Potential Impacts

• On Government Agencies: The Internal Revenue Service (IRS) and Treasury Department will need to update guidance, forms, and enforcement for the affected credits, potentially reducing administrative workload related to claiming and verifying these incentives. Federal revenue may increase slightly due to the loss of credit claims, though the overall fiscal impact depends on usage levels.
• On Citizens and Businesses: Taxpayers, especially those in the energy sector, will lose access to these credits, raising costs for investing in or producing renewable and clean energy. This could slow adoption of green technologies, affecting jobs in solar, wind, and hydrogen industries. Everyday citizens might see indirect effects through higher energy prices or slower progress on climate goals.
• On International Relations: Minimal direct impact, but it could signal a U.S. retreat from global clean energy commitments (e.g., under the Paris Agreement), potentially straining relations with allies focused on emissions reductions or affecting trade in green technologies.

Main Stakeholders Affected

• Energy Companies: Renewable energy firms (e.g., solar and wind producers) and clean tech manufacturers will lose key financial incentives, making projects less viable. Traditional energy providers (e.g., oil, gas, nuclear without credits) may gain a competitive edge.
• Taxpayers and Investors: Businesses and individuals claiming these credits for energy investments or production will face higher tax liabilities.
• Environmental and Advocacy Groups: Organizations promoting sustainability may oppose the bill due to setbacks in reducing carbon emissions.
• Government Entities: States, tribes, cooperatives, and nonprofits that transfer or elect these credits (under Sections 6417 and 6418) will have fewer options for clean energy funding.
• Workers and Communities: Employees in green energy sectors and regions reliant on subsidized projects could experience job losses or economic shifts.

Notable Legal, Constitutional, or Political Implications

• Legal Implications: The repeals are straightforward amendments to the tax code, requiring no new regulations beyond IRS implementation. However, ongoing claims or disputes over pre-2025 credits could lead to litigation if taxpayers challenge the retroactive cutoff.
• Constitutional Implications: None significant, as tax policy falls under Congress's broad authority to levy and modify taxes (Article I, Section 8). The bill does not infringe on states' rights or individual liberties.
• Political Implications: This could deepen partisan divides on energy and climate policy, with supporters viewing it as reducing government intervention and critics seeing it as undermining environmental progress. As an early 119th Congress bill (introduced January 9, 2025), it reflects priorities of its sponsors (Republicans focused on deregulation) and may influence broader tax reform debates.

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

Sponsor

Rep. Perry, Scott [R-PA-10]

Cosponsors (3)

Rep. Biggs, Andy [R-AZ-5], Rep. Ogles, Andrew [R-TN-5], Rep. Roy, Chip [R-TX-21]

Recent Actions

• 2025-01-09: Referred to the House Committee on Ways and Means.
• 2025-01-09: Introduced in House
• 2025-01-09: Introduced in House

Bill Versions

• Restoring Energy Market Freedom Act — issued 2025-01-09 — PDF (8 pages)