Two major U.S. clean energy associations have expressed concern over the House-passed reconciliation bill, warning that changes to renewable energy tax credits could hinder progress in domestic energy development, cost reduction, and job creation.
The legislation, approved by the House of Representatives on July 3 and awaiting presidential approval, scales back timelines for offshore wind developers to qualify for full tax credits under the Inflation Reduction Act.
The Oceantic Network said the bill “deprioritises domestic clean energy production and manufacturing.”
“America needs all the power it can get, but Washington chose to compound our national energy crisis,” said Liz Burdock, president and CEO of the Oceantic Network. “The Reconciliation Bill ultimately weakens our nation’s ability to compete in the global AI race and drives up costs for ratepayers.”
Under the revised terms, offshore wind projects must begin construction by mid-2026 or be completed by the end of 2027 to receive full tax benefits—a shorter timeframe than originally provided under the IRA. However, the bill also improves foreign supply chain rules and drops a previously proposed excise tax.
“Because of [our members’] relentless push, developers now have one year to start construction and retain 100% of their tax credits, with a simple ‘safe harbor’ option,” Burdock added. “Offshore wind remains a tool to address our nation’s surging energy demand and rising energy costs while driving economic growth.”
The American Council on Renewable Energy (ACORE) also criticised the bill, calling it a “missed opportunity” to align the U.S. with global investment trends.
“We are in a global race – not just for clean energy leadership, but for dominance in the technologies that will define the future, including artificial intelligence,” said Ray Long, president and CEO of ACORE. “China is aggressively investing in clean energy and digital infrastructure because they understand that energy security and economic competitiveness go hand in hand. This bill should have matched that urgency.”
Long added that long-term, stable tax policies “would have allowed us to do even more” to enhance affordability and accelerate clean energy deployment.
Despite their criticisms, both groups said they remain committed to working with policymakers to support renewable energy technologies including wind, solar, and storage.
