A reconciliation act passed by Republican legislators unwinds significant portions of the Inflation Reduction Act, passing narrowly at 218-214. This act diminishes incentives for solar, wind, and clean hydrogen, while preserving some benefits for nuclear and geothermal energy. Solar and wind developers must connect to the grid by the end of 2027 or initiate projects within a year to qualify for tax credits. The data center sector faces considerable challenges due to reduced availability of inexpensive power from renewable sources, particularly affecting green hydrogen startups with early credit expirations.
The reconciliation act unwinds much of the Inflation Reduction Act, passing with a narrow vote of 218-214, with two Republicans voting against it.
Solar, wind, and clean hydrogen lose incentives under the new bill, while nuclear and geothermal see some IRA benefits preserved.
To access tax credits, solar and wind developers must connect to the grid by the end of 2027 or start new projects within 12 months.
The data center sector will likely suffer the most from the new bill, which undermines previously accessible inexpensive power from solar and wind.
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