House GOP moves to slash renewable energy tax breaks
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Summary
The US House of Representatives has passed a $40bn spending package designed to reduce the federal budget deficit and which includes provisions that would significantly reduce tax credits for wind and solar projects.
The so-called “big, beautiful bill” has been put together by Republicans and, if passed by the Senate and signed into law by President Biden, could dramatically slow the expansion of renewable energy projects by making them ineligible for tax credits.
It would also restrict access to these tax credits by stipulating that projects must begin construction within 60 days of the bill becoming law, and be placed in service by the end of 2028, which many argue is impossible to achieve.
The bill has been opposed by Democrats and many in the renewable energy sector, who have warned that it would lead to greater pollution, higher energy costs for consumers and the possible loss of around 900,000 jobs.