Senate Republicans have introduced a draft domestic spending bill that poses a significant threat to the clean energy industry. The proposed legislation includes a new tax on renewable energy projects that source components from foreign entities of concern, primarily China.
The bill also aims to phase out the two most important tax credits for wind and solar power projects that enter service after 2027. Trade groups warn that these measures could increase the industry's financial burden by an estimated $4 billion to $7 billion, potentially jeopardizing hundreds of thousands of construction jobs.
The abrupt elimination of investment and electricity production tax credits after 2027 could eliminate 300 gigawatts of wind and solar projects over the next decade, representing approximately $450 billion in infrastructure investment. Shares of NextEra Energy, the largest renewable developer in the U.S., fell 2% following the news of this proposed legislation.
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