H.R. 2838: Ending Intermittent Energy Subsidies Act of 2025

This legislation, titled the Ending Intermittent Energy Subsidies Act of 2025, aims to amend the Internal Revenue Code to reduce and ultimately phase out certain tax credits related to clean electricity production and investment, specifically focused on wind and solar energy. Below are the main components of the bill:

Termination of Certain Tax Credits

The bill proposes the following changes to the tax credits:

• Clean Electricity Production Credit: The bill modifies the clean electricity production credit by stating that it will no longer apply to electricity produced using solar or wind energy.
• Clean Electricity Investment Credit: This credit will also be amended to remove related benefits for facilities generating electricity from solar or wind energy.

Phase-Out Schedule

The bill outlines a gradual phase-out of the clean electricity production and investment credits over a four-year period for solar and wind power:

• For electricity produced in the first calendar year after enactment, recipients will receive 80% of the normal credit.
• In the second year, the credit will be reduced to 60%.
• In the third year, it will further drop to 40%.
• In the fourth year, the credit will be cut to 20%.
• After this period, no credits will be available for solar or wind energy production or investments.

Effective Date

The changes proposed in this bill are set to take effect for taxable years beginning after the bill becomes law. This means that the new rules would impact tax credits depending on the year in which the electricity is produced or the facility is put into service.

Impact on Tax Credits

The primary effect of this legislation would be to eliminate financial incentives aimed at promoting the use of solar and wind energy in electricity generation. The tax credits for these forms of energy would be progressively reduced, effectively phasing them out entirely over the specified period.

Relevant Companies

• NEXT: A company involved in the clean energy sector that may experience a negative impact due to the reduction of subsidies for solar and wind energy.
• NDAQ: Operates within the financial services arena, potentially impacted if investments and incentives in renewable energy diminishes, affecting the market landscape.