S. 1721: Energy Freedom Act

The "Energy Freedom Act" proposes the repeal of several tax credits and subsidies related to green energy that are currently part of the Internal Revenue Code of 1986. This would affect various initiatives aimed at energy efficiency, clean vehicles, and renewable energy resources. The changes are set to take effect for facilities and property that are placed in service after December 31, 2025.

Main Provisions

• The bill targets green energy tax incentives and their associated subsidies.
• It specifically repeals the energy efficient commercial buildings deduction.
• The bill also includes the cessation of certain regulations related to energy efficiency.
• A notable tax on petroleum will be eliminated starting January 1, 2026.

Implementation Timeline

The amendments proposed in this bill will not affect existing facilities or properties placed in service before the deadline. Instead, the repeal of incentives will apply only to those facilities and properties that begin service after December 31, 2025.

Potential Impact on Energy Initiatives

The repeal of these incentives may lead to a reduction in investment in green energy projects, as tax credits are often crucial for encouraging businesses and individuals to pursue energy-efficient and renewable energy options.

Relevant Companies

• None found