U.S. energy tax loopholes face new GOP push
The Certainty for Our Energy Future Act, introduced May 9, would eliminate certain wind and solar tax incentives while restricting access to clean energy benefits for entities tied to countries like China, Russia, Iran and North Korea.
There is a push in Congress to phase out clean energy tax breaks and block foreign adversaries from benefiting from the loopholes.
Rep. Jen Kiggans, R-Va., is leading the Republican effort, calling it a step toward protecting U.S. taxpayers and national security.
The Certainty for Our Energy Future Act, introduced May 9, would eliminate certain wind and solar tax incentives while restricting access to clean energy benefits for entities tied to countries like China, Russia, Iran and North Korea.
Kiggans framed the bill as a way to stop U.S. tax dollars from subsidizing rival nations and to push American energy into a more reliant, innovation-driven future. She said saving taxpayer money and boosting homegrown industry is key to maintaining national security.
Supporters say wind and solar have reached commercial maturity and, therefore, no longer need the same level of taxpayer-funded help to stay competitive.
If passed, the bill would pull the plug on new federal tax credits for wind and solar projects starting in 2031. Companies still have until the end of 2030 to begin construction and qualify under current rules. The new restrictions would officially take effect starting in January 2026.
"With electricity demand projected to increase by up to 50% over the next 15 years, we need an all-of-the-above energy strategy," said Frank Macchiarola, Chief Advocacy Officer for American Clean Power Association.
It would also shut the door on companies with ties to foreign adversaries— specifically to China, Russia, Iran and North Korea — from receiving any U.S. clean energy tax benefits. That includes companies based in those countries or controlled by their governments.
"Right-sizing policies in parallel with offering business and investment certainty is both critical and commonsense. As America seeks to beat China in the global AI race, legislation like this strengthens our nation's competitive edge while ensuring American energy remains abundant and affordable," said Citizens for Responsible Energy Solutions.
While this bill is forward-looking, Kiggans’ concerns are backed by years of federal spending data showing foreign-owned companies have already benefited from U.S. tax subsidies.
One of the most frequently cited examples is Iberdrola. This Spanish-owned wind company received over $2.2 billion in U.S. support between 2004 and 2014, according to reports. More recently, Chinese-affiliated firms like Gotion High-Tech and Trina Solar have drawn attention for seeking Inflation Reduction Act tax benefits while maintaining ties to the Chinese Communist Party, which led to the introduction of the federal "NO GOTION Act."
Kiggans' bill wouldn't directly affect those companies, but it targets what she and her co-sponsors say is a growing blind spot in U.S. energy law that allows adversarial nations to benefit from taxpayer-funded programs.