A bill to temporarily suspend the clean electricity production credit to support the Strategic Petroleum Reserve.
Sponsored By: Senator Tom Cotton
Introduced
Summary
Temporarily suspends the federal clean electricity production tax credit and directs the added revenue to the Strategic Petroleum Reserve. This bill would halt the Section 45Y production credit for electricity produced from October 1, 2025 through September 30, 2027 and require Treasury to transfer the resulting revenue increases into the SPR Petroleum Account.
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- Clean electricity producers: Electricity generated during Oct 1, 2025 to Sep 30, 2027 would not be eligible for the Section 45Y production credit, reducing tax benefits for projects producing power in those two fiscal years.
- Treasury and the Strategic Petroleum Reserve: The Secretary of the Treasury would deposit amounts equal to the increased revenues from the credit suspension into the SPR Petroleum Account.
*This bill would temporarily increase Treasury revenues by suspending the credit and direct those amounts to the Strategic Petroleum Reserve Petroleum Account.*
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Bill Overview
Analyzed Economic Effects
2 provisions identified: 1 benefits, 1 costs, 0 mixed.
Lower tax breaks for power producers
If enacted, electricity producers would not be able to claim the clean electricity production tax credit for electricity produced from October 1, 2025, to September 30, 2027. This would remove tax benefits for qualifying power production during that two‑year window and could lower producer revenue. Households could later see higher electricity prices, but the bill shows no dollar amounts.
Money sent to Strategic Petroleum Reserve
If enacted, the Treasury would deposit into the Strategic Petroleum Reserve Petroleum Account amounts equal to the increase in Treasury revenues caused by suspending the clean electricity production credit. The deposits must equal the revenue gain from that suspension. The bill does not name dollar amounts or set caps. Deposits would begin upon enactment.
Sponsors & CoSponsors
Sponsor
Tom Cotton
AR • R
Cosponsors
There are no cosponsors for this bill.
Roll Call Votes
No roll call votes available for this bill.
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