Republicans on the House Ways and Means Committee have introduced draft legislation aimed at phasing out key renewable energy tax incentives, prompting strong criticism from clean energy advocates and industry groups.
The proposed bill seeks to eliminate tax credits for most renewable energy production and investment by 2031. It would also limit access to those credits for foreign entities, potentially reshaping the landscape for offshore wind and other clean energy sectors backed under the Inflation Reduction Act (IRA).
The IRA, signed into law in 2022, was a cornerstone of the Biden administration’s strategy to strengthen domestic manufacturing, build a U.S.-based supply chain, and expand transmission planning for offshore wind energy. Former President Donald Trump, now seeking a return to the White House, has publicly supported dismantling the law’s key provisions.
Industry leaders say the proposed legislation could undermine progress in clean energy development.
“Dismantling clean energy and manufacturing tax credits only worsens our national energy crisis and will directly harm Americans by increasing energy bills, stifling investment, slowing energy development, and killing good-paying jobs across the United States,” said Stephanie Francoeur, senior vice president of marketing and communications at Oceantic Network.
Francoeur added that offshore wind, in particular, supports domestic industries such as steel production and shipbuilding. “Instead of advancing the administration’s priorities, the proposed reconciliation package stalls project development underwritten by a 40-state supply chain while explicitly targeting critical manufacturing tax credits, threatening billions of dollars of investments in the Midwest, Mid-Atlantic, and American South,” she said.
The American Council on Renewable Energy (ACORE) also voiced opposition to the draft bill. ACORE President and CEO Ray Long warned that rolling back tax stability could jeopardize U.S. economic competitiveness and energy security.
“Energy dominance means a secure, affordable, reliable energy supply that serves as the basis for our national security, technological leadership, and economic prosperity,” Long said. “The House Ways and Means Committee bill, if passed, would hamper these goals.”
Long cited an ACORE report stating that current clean energy tax policy has enabled $115 billion in new power generation, supported 3.5 million jobs, and supplied power to 170 million homes in 2024.
“Maintaining the policy structure that has enabled this growth in investment, manufacturing, jobs, and consumer savings will ensure U.S. dominance over our competitors,” Long said.
Republican lawmakers have defended the move as part of broader efforts to reform federal spending and reassess government support for the energy sector. However, with mounting energy demand and ongoing geopolitical tensions, opponents argue that reducing incentives for renewables may delay critical infrastructure and drive up consumer energy costs.
The draft bill is expected to face significant debate in Congress in the coming weeks.
