H.R.2838 - Ending Intermittent Energy Subsidies Act of 2025 (119th Congress)
Summary
H.R.2838, the "Ending Intermittent Energy Subsidies Act of 2025," aims to phase out clean electricity production and investment credits specifically for wind and solar energy. The bill amends the Internal Revenue Code of 1986, targeting sections related to clean electricity production (Section 45Y) and investment credits (Section 48E). The phase-out would occur over four years, starting with an 80% credit in the first year after enactment and decreasing to 0% by the fifth year.
Expected Effects
If enacted, this bill would reduce or eliminate federal subsidies for new wind and solar energy projects. This could lead to increased costs for these energy sources, potentially slowing their growth compared to other energy technologies. The change would also affect the transferability of clean electricity credits related to wind and solar energy.
Potential Benefits
- Potentially lower tax burden for taxpayers by reducing government spending on renewable energy subsidies.
- May encourage a more diverse energy portfolio by removing preferential treatment for wind and solar.
- Could lead to greater market competition among different energy sources.
- Might reduce the risk of over-reliance on intermittent energy sources like wind and solar.
- Could incentivize innovation in other energy sectors that currently receive less government support.
Most Benefited Areas:
Potential Disadvantages
- Could slow down the transition to renewable energy sources, potentially hindering efforts to combat climate change.
- May increase the cost of electricity for consumers in regions reliant on wind and solar energy.
- Could lead to job losses in the wind and solar industries.
- May reduce investment in renewable energy infrastructure.
- Potentially increase reliance on fossil fuels.
Constitutional Alignment
The bill falls under the purview of Congress's power to tax and spend, as outlined in Article I, Section 8 of the Constitution. The Constitution grants Congress the power to lay and collect taxes, duties, imposts, and excises, to pay the debts and provide for the common defense and general welfare of the United States. The bill's provisions relate to tax credits and incentives, which are within Congress's authority to regulate.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).