Sen. Cotton Proposes Pausing Clean Energy Tax Credits to Fund Strategic Petroleum Reserve
This bill is currently in the early stages of the legislative process after being sent to the Senate Committee on Finance for review. It is considered active, but no further hearings or votes have been scheduled at this time.
Small clean energy companies — including independent solar installers, small wind farm operators, and community energy developers — would lose a key per-kilowatt-hour tax credit for two years. This could squeeze margins, delay expansion plans, and make it harder for smaller operators to compete, since they often depend more on tax incentives than large utilities with diversified portfolios.
“This section shall not apply with respect to any electricity produced during the period beginning on October 1, 2025, and ending on September 30, 2027.”
Read twice and referred to the Committee on Finance.
Sent to a congressional committee for expert review. The committee decides whether this bill moves forward.
Introduced in Senate
The bill was officially filed and given a number. It now enters the legislative queue.
No votes have been recorded for this legislation yet.
Sen. Tom Cotton (R-Ark.) introduced a bill to suspend the Section 45Y clean electricity production credit for FY 2026-2027, redirecting the revenue to the Strategic Petroleum Reserve. The move comes as the war in Iran pushes up fuel prices and the administration seeks to bolster oil reserves.
Senator Tom Cotton (R-AR) introduced the SPARTA Act to replenish the Strategic Petroleum Reserve after years of depletion. The bill would temporarily suspend clean energy tax credits to fund the emergency oil stockpile, aiming to protect Arkansans from high prices at the pump.
House and Senate Republicans are exploring the use of budget reconciliation to pass the SPARTA Act and other energy priorities. Ways and Means Trade Subcommittee Chair Adrian Smith noted that while some provisions have broad support, others may face challenges in the reconciliation format.
Document Type
Congressional Bill
Official Title
A bill to temporarily suspend the clean electricity production credit to support the Strategic Petroleum Reserve.
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