PRIA Logo™
119-s-1721119th CongressWALLET

Energy Freedom Act

Sponsored By: Senator Lee, Mike [R-UT]

Introduced

Summary

This Act repeals most federal tax incentives for clean energy, energy efficiency, clean vehicles, and alternative fuels. It phases out those credits for property placed in service after December 31, 2025 and makes wide conforming changes across the tax code to remove references to the repealed incentives.

Show full summary
  • Homeowners and households will lose multiple tax supports for energy upgrades and residential clean energy. This removes credits for energy efficient home improvements and residential clean energy systems.
  • Car buyers and charging networks will no longer qualify for several vehicle and refueling credits. The bill repeals new and previously owned clean vehicle credits and the alternative fuel vehicle refueling property credit.
  • Renewable energy, fuels, and clean technology industries face broad cuts to production and investment incentives. The repeal covers credits for renewable electricity, carbon capture, clean hydrogen, sustainable aviation fuel, biodiesel and renewable diesel, advanced manufacturing, zero emission nuclear, and clean electricity investment, plus related tax provisions and elective payment or credit transfer rules.

Personalized for You

How does this bill affect your finances?

Personalize government policy and PRIA will tell you what this bill means for your household, plus every other piece of legislation we track. PRIA reads each provision against your financial profile to show you exactly what matters to your wallet.

Free to download

Bill Overview

Analyzed Economic Effects

5 provisions identified: 0 benefits, 4 costs, 1 mixed.

End commercial energy deduction

If enacted, the special tax deduction for energy‑efficient commercial buildings would be repealed for property placed in service after December 31, 2025. Building owners and firms would no longer be able to claim that deduction for new qualifying property. That would raise taxable income or reduce tax savings for affected owners.

Remove many clean-energy tax credits

If enacted, a long list of federal clean‑energy tax credits would be repealed or ended for items placed in service, sold, or acquired after December 31, 2025 (and some on January 1, 2026). Homeowners, buyers of qualifying clean vehicles, and businesses could no longer claim those credits for qualifying purchases or production after the listed dates. This would likely raise out‑of‑pocket costs for home energy upgrades, vehicle buyers, and some energy projects.

Shrink biofuel producer credit

If enacted, the second‑generation biofuel producer credit would be narrowed by deleting and restructuring many parts of the credit. Biofuel producers and some farmers could receive smaller credits or face new limits under the revised rules. The bill text does not list replacement dollar amounts.

Remove separate petroleum tax rules

If enacted, the separate tax subchapter that treated petroleum would be repealed starting January 1, 2026. Refiners, importers, and other petroleum firms would face a changed tax framework. Some firms could pay more under the new rules, while others could pay less, and there could be downstream effects on fuel markets.

End elective clean-credit payments

If enacted, taxpayers could no longer elect cash payments or transfer certain clean‑energy tax credits for taxable years beginning after December 31, 2025. Contractors, REITs, and other firms that used those options would lose a way to monetize credits and could see weaker cash flow.

Sponsors & CoSponsors

Sponsor

Lee, Mike [R-UT]

UT • R

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

No roll call votes available for this bill.

View on Congress.gov
Back to Legislation