Clean energy industry faces major tax hike under Trump bill, trade group says

The Senate Republicans suddenly threaten the loans that support the expansion of the industry in the latest version of President Donald Trump’s major expenditure bill on clean energy projects.

If commercial groups, measures, entered into force, would endanger hundreds of thousands of construction, damage the electricity network and potentially increase electricity prices for consumers.

Senate GOP, Massive domestic expenditure bill If it provides components from foreign organizations that apply a new tax to renewable energy projects, which are basically China. The bill is also gradual for the two most important tax loans for wind and solar energy projects that are put into service after 2027.

Republicans are competing to pass Trump’s internal expenditure legislation until the deadline imposed on themselves. On Monday, the Senate votes on the latest version of the bill.

The American Clean Power Association Market Analysis Senior Vice President John Hensley surprised the renewable energy industry and felt punishing. The authority said the industry will increase the burden of the industry to $ 4 billion to $ 7 billion.

“At the end of the day, a new tax in a package designed to reduce the tax burden of companies in the American economy.” He said. The tax hits any wind and solar project, which is put into service after 2027 and exceeds certain thresholds, as it is caused by how many components from China.

This is combined with the sudden elimination of the investment tax loan and electricity generation tax loan after 2027, threatening to eliminate the 300 Gigawatt wind and solar project for the next 10 years, which is equivalent to an infrastructure investment of approximately $ 450 billion.

“Development will take most of the pipeline or completely eliminate or push down the road.” He said. This said it would increase electricity prices for consumers and potentially force the electricity network.

The construction industry warned that if energy tax loans are terminated and other measures in the budget invoice are applied, approximately 2 million work is at risk in construction transactions. These loans supported a explosion in clean power installations and clean technology production.

Sean McGarvey, President of the building trade unions of North America, said in a statement, “If it is abolished, this will be the greatest job in the history of this country,” he said. “Simply put, it is equivalent to terminating more than 1,000 keystone XL pipeline project project.”

Morgan Stanley Analyst Andrew Percoco, in the market note to customers, the Senate legislation “the worst of the worst case for the sun and the wind” is moving towards the result.

Shares Nextera EnergyThe largest renewable developer in the USA fell by 2%. Sun stocks Array Technologies 8 %dropped Enphase It lost about 2% and Nextracker 5 %rolled.

Trump’s former adviser Elon Musk hit the Senate legislation at the weekend.

“The latest Senate draft bill will destroy millions of jobs in the United States and will cause tremendous strategic damage to our country,” Tesla CEO published on x. “It is completely crazy and destructive. He’s giving listeners to the industries of the past while damaging the industries of the future.”