Two of America’s leading clean energy trade groups have criticised the House’s reconciliation bill for curtailing renewable energy tax credits, warning it risks derailing progress in energy security, cost reductions and job creation.
The Oceantic Network said the legislation, which passed the House on 3 July and now heads to the President’s desk, “deprioritises domestic clean energy production and manufacturing”.
“America needs all the power it can get, but Washington chose to compound our national energy crisis,” said Oceantic president and CEO Liz Burdock.
“The Reconciliation Bill ultimately weakens our nation’s ability to compete in the global AI race and drives up costs for ratepayers.”
Under the final language, offshore wind developers must begin construction by mid-2026 or complete it by end-2027 to retain full eligibility for Inflation Reduction Act tax credits – a significant scaling back from previous timelines. Oceantic noted that the bill also improves foreign-entity supply chain rules and removes a proposed excise tax.
Burdock added: “Because of [our members’] relentless push, developers now have one year to start construction and retain 100% of their tax credits, with a simple ‘safe harbor’ option. Offshore wind remains a tool to address our nation’s surging energy demand and rising energy costs while driving economic growth.”
The American Council on Renewable Energy (ACORE) also hit out at the bill, describing it as a “missed opportunity”.
ACORE president and CEO Ray Long said: “We are in a global race – not just for clean energy leadership, but for dominance in the technologies that will define the future, including artificial intelligence.
“China is aggressively investing in clean energy and digital infrastructure because they understand that energy security and economic competitiveness go hand in hand. This bill should have matched that urgency.”
He added that stable tax policies “would have allowed us to do even more” to support affordability and clean power delivery.
Despite the setback, ACORE said it remains committed to working with leaders across the political spectrum to support wind, solar, storage and other technologies.