Restoring Energy Market Freedom Act
Sponsored By: Representative Perry, Scott [R-PA-10]
Introduced
Summary
Repeals a broad set of federal energy tax credits. The bill would remove many major clean-energy incentives and then rewrite tax-code cross-references and election rules to reflect that repeal.
Show full summary
- Energy developers and clean-tech projects would lose key federal incentives. The repeal targets production and investment credits and related credits, including provisions like section 45, section 48, and section 45Q.
- Tax-exempt entities, governments, tribes, Alaska Native corporations, the Tennessee Valley Authority, and certain rural electric cooperatives would see new definitions and election rules for credit refunds and transfers. The bill would redefine “applicable entity” and change when elections must be made and their irrevocability.
- The wider tax code would be adjusted through many conforming amendments that insert “as in effect immediately before its repeal” into numerous sections. These edits change how other credits and definitions reference the repealed energy rules and would apply to taxable years beginning after December 31, 2024.
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Bill Overview
Analyzed Economic Effects
3 provisions identified: 0 benefits, 1 costs, 2 mixed.
Energy project tax credits would end
If enacted, many federal energy tax credits would end for tax years starting after December 31, 2024. Credits in multiple sections, including 45, 45Q, 45X, 45Y, and 48, would be repealed. The bill would also change how the general business credit combines items, which could change how companies report and carry credits. It would further redefine a 45Z “qualified facility” to one that makes transportation fuels, which could narrow who qualifies.
New direct-pay rules for nonprofits and governments
If enacted, the bill would set who can make a direct‑pay tax credit election. Eligible groups would include tax‑exempt organizations, states and cities, the Tennessee Valley Authority, tribal governments, Alaska Native Corporations, and rural electric co‑ops. Elections would be due by the return due date or by a date set by Treasury if no return is required. No election could be made earlier than 180 days after enactment. Once made, the election would be final for that tax year. These rules would apply to tax years starting after December 31, 2024.
New tax rule for housing credit investors
If enacted, the bill would change how the low‑income housing credit is treated for a specific corporate tax calculation. It would say amounts must be properly allocable to the low‑income housing credit under section 42(a). This would apply to tax years starting after December 31, 2024. Investors and developers that claim or receive this credit could see their tax bills go up or down.
Sponsors & CoSponsors
Sponsor
Perry, Scott [R-PA-10]
PA • R
Cosponsors
Rep. Biggs, Andy [R-AZ-5]
AZ • R
Sponsored 1/9/2025
Rep. Ogles, Andrew [R-TN-5]
TN • R
Sponsored 1/9/2025
Rep. Roy, Chip [R-TX-21]
TX • R
Sponsored 1/9/2025
Roll Call Votes
No roll call votes available for this bill.
View on Congress.gov