American Energy Independence and Affordability Act
Sponsored By: Representative Thompson (CA)
Introduced
Summary
This bill would restore and extend energy tax credits and cost-recovery rules to keep incentives for wind, solar, clean fuels, efficiency upgrades, and clean vehicles available for a longer period. It rewrites timing and eligibility for many existing credits so they apply again or last longer.
Show full summary
- Homeowners would keep the residential clean energy tax credit and see a top credit of 30% for qualifying installations.
- Wind and solar developers would regain eligibility for key production and investment credits and face a later phaseout tied to a 25% emissions threshold or the year 2032.
- Buyers of clean cars and commercial fleets would get extended access to vehicle and refueling credits, with phased increases that reach full value after 2028 and many vehicle credits extended through 2032.
- Manufacturers and clean-tech projects would benefit from reinstated advanced manufacturing and production credits and restored cost-recovery rules for energy property.
- Sustainable aviation fuel producers would receive per-gallon credits of 35 cents for one category and $1.75 for another, with ASTM-based definitions and some feedstock exclusions.
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Bill Overview
Analyzed Economic Effects
10 provisions identified: 8 benefits, 0 costs, 2 mixed.
EV credits extended for new and used
If enacted, you could claim EV tax credits for a longer time. For new clean vehicles, the credit would be 80% for vehicles placed in service after December 31, 2026 and during 2027, 90% during 2028, and 100% for vehicles placed in service after December 31, 2028. The new‑vehicle credit window would run through December 31, 2032. The used clean vehicle credit would also be available for qualifying vehicles acquired through December 31, 2032.
Year-based rates for home energy credit
If enacted, your residential clean energy credit rate would depend on when the system starts working. It would be 30% for property placed in service before January 1, 2033, 26% for 2023–2033 placements, and 22% for 2024 placements. The rules would use the placed‑in‑service date, not when you paid. This would help you plan installs and know the exact rate by year.
Keep business energy deductions and depreciation
If enacted, the commercial building energy deduction would not end, so owners and designers could keep claiming section 179D. It would also clarify that certain solar and wind energy property can use section 168 cost‑recovery rules tied to section 48(a)(3). This could lower tax bills for businesses investing in efficient buildings and energy property.
Extend clean electricity production and investment credits
If enacted, the clean energy production credit would phase out later: the later of 2032 or when U.S. power‑sector emissions fall to 25% of 2022 levels. Limits on wind and solar leasing would be removed for both the production and investment credits. The bill would also raise one energy property credit rate from 0% to 2%. These changes would keep support in place for wind, solar, and related projects longer.
Higher tax credits for aviation fuel
If enacted, sustainable aviation fuel could get higher credits per gallon. Some qualifying fuel would get $0.35 per gallon, and other qualifying fuel would get $1.75 per gallon. The fuel must meet ASTM standards and cannot come from palm fatty acid distillates or petroleum. Credits would be based on gallons produced or sold.
Mixed changes to energy manufacturing credits
If enacted, the manufacturing credit would drop metallurgical coal from its eligible materials but restore eligibility for wind components. The advanced energy project credit allocation could be increased, removing a prior limit. Some producers would lose eligibility, while others would gain access to larger or additional credits.
More time for new efficient home credit
If enacted, the New Energy Efficient Home Credit would cover homes acquired through December 31, 2032. Builders and developers could qualify for more projects. Buyers of qualifying homes could benefit when builders pass savings through pricing or incentives.
Longer credits for commercial EVs and chargers
If enacted, the commercial clean vehicle credit would run through December 31, 2032. The credit for alternative refueling property, like charging stations, would also run through December 31, 2032. Fleets and property owners would have more time to plan purchases and still claim credits.
More time for clean hydrogen projects
If enacted, clean hydrogen projects would have until January 1, 2033 to begin construction to qualify for the production credit. Developers would have five more years to line up projects and financing.
Product ID needed for home energy credit
If enacted, many Energy Efficient Home Improvement Credits would require a product ID. For items placed in service after December 31, 2024, the item must be made by a qualified manufacturer and you would need to list its product ID on your tax return. Manufacturers would have to assign unique IDs, label products, and report IDs to the IRS. Without a valid ID and qualified maker, you would not get the credit.
Sponsors & CoSponsors
Sponsor
Thompson (CA)
CA • D
Cosponsors
Neal
MA • D
Sponsored 10/28/2025
Doggett
TX • D
Sponsored 10/28/2025
Larson (CT)
CT • D
Sponsored 10/28/2025
Davis (IL)
IL • D
Sponsored 10/28/2025
Sanchez
CA • D
Sponsored 10/28/2025
Sewell
AL • D
Sponsored 10/28/2025
DelBene
WA • D
Sponsored 10/28/2025
Chu
CA • D
Sponsored 10/28/2025
Moore (WI)
WI • D
Sponsored 10/28/2025
Boyle (PA)
PA • D
Sponsored 10/28/2025
Beyer
VA • D
Sponsored 10/28/2025
Evans (PA)
PA • D
Sponsored 10/28/2025
Schneider
IL • D
Sponsored 10/28/2025
Panetta
CA • D
Sponsored 10/28/2025
Gomez
CA • D
Sponsored 10/28/2025
Horsford
NV • D
Sponsored 10/28/2025
Del. Plaskett, Stacey E. [D-VI-At Large]
VI • D
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Suozzi
NY • D
Sponsored 10/28/2025
Fields
LA • D
Sponsored 10/28/2025
Barragan
CA • D
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Ansari
AZ • D
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Tonko
NY • D
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Cleaver
MO • D
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Carter (LA)
LA • D
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Vargas
CA • D
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Tran
CA • D
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Matsui
CA • D
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Salinas
OR • D
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McCollum
MN • D
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Garcia (CA)
CA • D
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Norcross
NJ • D
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Castor (FL)
FL • D
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Garamendi
CA • D
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Scott (VA)
VA • D
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Lieu
CA • D
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DeGette
CO • D
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Lynch
MA • D
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Cherfilus-McCormick
FL • D
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Del. Norton, Eleanor Holmes [D-DC-At Large]
DC • D
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McIver
NJ • D
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Kelly (IL)
IL • D
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Landsman
OH • D
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Simon
CA • D
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Casten
IL • D
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Goldman (NY)
NY • D
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Tokuda
HI • D
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Gonzalez, V.
TX • D
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Kennedy (NY)
NY • D
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DeSaulnier
CA • D
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Min
CA • D
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Foushee
NC • D
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Elfreth
MD • D
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Magaziner
RI • D
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Deluzio
PA • D
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Brownley
CA • D
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Costa
CA • D
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Mfume
MD • D
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Morrison
MN • D
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Mullin
CA • D
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Williams (GA)
GA • D
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Pettersen
CO • D
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Lofgren
CA • D
Sponsored 10/28/2025
Ross
NC • D
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Courtney
CT • D
Sponsored 10/28/2025
Takano
CA • D
Sponsored 10/28/2025
Scholten
MI • D
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Espaillat
NY • D
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Correa
CA • D
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Jackson (IL)
IL • D
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Schakowsky
IL • D
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Titus
NV • D
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Stanton
AZ • D
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McClellan
VA • D
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McGarvey
KY • D
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Budzinski
IL • D
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Huffman
CA • D
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Friedman
CA • D
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Carbajal
CA • D
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Bell
MO • D
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McBride
DE • D
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Quigley
IL • D
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Scanlon
PA • D
Sponsored 10/28/2025
Randall
WA • D
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Carson
IN • D
Sponsored 10/28/2025
Bynum
OR • D
Sponsored 10/28/2025
Hoyer
MD • D
Sponsored 10/28/2025
Nadler
NY • D
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Torres (NY)
NY • D
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Kamlager-Dove
CA • D
Sponsored 10/28/2025
Ruiz
CA • D
Sponsored 10/28/2025
Pingree
ME • D
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Mrvan
IN • D
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Frankel, Lois
FL • D
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Cohen
TN • D
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Bonamici
OR • D
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Larsen (WA)
WA • D
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Jacobs
CA • D
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Gottheimer
NJ • D
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Khanna
CA • D
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Garcia (TX)
TX • D
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Latimer
NY • D
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Thanedar
MI • D
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Johnson (TX)
TX • D
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Foster
IL • D
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Davids (KS)
KS • D
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McDonald Rivet
MI • D
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Amo
RI • D
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Sorensen
IL • D
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Thompson (MS)
MS • D
Sponsored 10/28/2025
Stansbury
NM • D
Sponsored 10/28/2025
Menendez
NJ • D
Sponsored 10/28/2025
Waters
CA • D
Sponsored 10/28/2025
McGovern
MA • D
Sponsored 10/28/2025
Moulton
MA • D
Sponsored 10/28/2025
Fletcher
TX • D
Sponsored 10/31/2025
Levin
CA • D
Sponsored 10/31/2025
Pocan
WI • D
Sponsored 11/4/2025
Dexter
OR • D
Sponsored 11/18/2025
McClain Delaney
MD • D
Sponsored 11/20/2025
Wasserman Schultz
FL • D
Sponsored 12/18/2025
Hayes
CT • D
Sponsored 1/7/2026
Meng
NY • D
Sponsored 1/12/2026
Vindman
VA • D
Sponsored 1/13/2026
Pappas
NH • D
Sponsored 1/13/2026
Raskin
MD • D
Sponsored 1/21/2026
Dean (PA)
PA • D
Sponsored 2/10/2026
Krishnamoorthi
IL • D
Sponsored 2/20/2026
Balint
VT • D
Sponsored 2/20/2026
Roll Call Votes
No roll call votes available for this bill.
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