Restoring Energy Market Freedom Act

Key Points

• The bill would repeal a wide range of energy-related tax credits from the Internal Revenue Code, including credits for wind, solar, nuclear, carbon capture, hydrogen, clean electricity, and advanced manufacturing. These are some of the largest federal incentives driving clean energy investment in the U.S.
• The repealed credits include the production tax credit (Section 45), the investment tax credit (Section 48), the carbon oxide sequestration credit (45Q), the clean hydrogen credit (45V), the advanced manufacturing credit (45X), and the semiconductor manufacturing credit (48D), among others.
• If enacted, the changes would take effect for tax years beginning after December 31, 2024, meaning companies currently relying on these credits for ongoing or planned projects would lose them starting in the 2025 tax year.
• The bill also strips back the transferability and direct pay provisions that allowed tax-exempt entities, governments, and cooperatives to benefit from many of these credits, significantly narrowing who can claim the remaining energy-related tax benefits.
• Introduced by Rep. Perry with co-sponsors Biggs, Ogles, and Roy, the bill reflects a free-market approach to energy policy by removing government subsidies that currently support clean energy and advanced manufacturing sectors.