Senate-Passed Megabill Modifies Energy Tax Provisions

It removes excise tax on solar and wind projects and extends for a year tax credits on renewable energy projects.

The inside of a solar power inverter in Dry Lake Valley, Nev., on June 28, 2021. Ethan Miller/Getty Images

Senate Republicans on July 1 revised some energy tax provisions in a sweeping domestic policy bill as part of a compromise reached with Senate holdouts to secure their votes for the package.

Republicans removed a proposed excise tax on solar and wind development and added a year for renewable energy projects to begin construction to qualify for tax credits. Instead of ending on Dec. 31, 2026, that program ends on Dec. 31, 2027.