Senate excludes renewable energy excise tax from Trump’s policy bill

A Senate bill advancing President Trump’s domestic agenda has removed a proposed excise tax on wind and solar projects using materials from restricted countries such as China. The tax was estimated to increase energy prices by 8% to 10% and add up to $7 billion in costs for the clean energy sector by 2036. The bill has also slowed the phase-out of tax credits for wind and solar projects. Projects that start before June 2026 or begin working by 2027 can still get the incentives. But many key benefits from the 2022 Inflation Reduction Act were removed. These include tax breaks for electric vehicles, energy-saving products, and other clean energy projects. Experts warned this could cause over 1.6 million job losses, $290 billion in lost economic output, and higher emissions by 2035.The bill now moves to the House for approval.