House Republicans passed a tax bill on May 22, 2025, that includes provisions to terminate key clean energy tax credits earlier than previously planned. The revised language in the bill would end certain tax credits for wind and solar energy by 2028, a faster phase-out compared to the slower timeline through 2031 that was initially anticipated.
This legislative action introduces increased policy uncertainty and could reduce the financial incentives that have been critical drivers of growth for the renewable energy sector. While the manufacturing tax credit, which benefits First Solar, appeared relatively unscathed, the broader impact on project viability remains a concern.
The bill now moves to the Senate for consideration, where further changes are possible. However, the House's passage of these more stringent provisions creates headwinds for the clean energy industry by shortening the window for projects to qualify for full tax credits.
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