HR5862119th CongressWALLET

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.

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

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  • Boyle (PA)

    PA • D

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  • Beyer

    VA • D

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  • Evans (PA)

    PA • D

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  • Schneider

    IL • D

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  • Panetta

    CA • D

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  • Gomez

    CA • D

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  • Horsford

    NV • D

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  • Del. Plaskett, Stacey E. [D-VI-At Large]

    VI • D

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  • Suozzi

    NY • D

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  • Fields

    LA • D

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  • 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

    Sponsored 10/28/2025

  • 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

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  • Ross

    NC • D

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  • Courtney

    CT • D

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  • Takano

    CA • D

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  • Scholten

    MI • D

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  • Espaillat

    NY • D

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  • Correa

    CA • D

    Sponsored 10/28/2025

  • Jackson (IL)

    IL • D

    Sponsored 10/28/2025

  • 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

    Sponsored 10/28/2025

  • McBride

    DE • D

    Sponsored 10/28/2025

  • Quigley

    IL • D

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  • Scanlon

    PA • D

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  • Randall

    WA • D

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  • Carson

    IN • D

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  • Bynum

    OR • D

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  • Hoyer

    MD • D

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  • Nadler

    NY • D

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  • Torres (NY)

    NY • D

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  • Kamlager-Dove

    CA • D

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  • Ruiz

    CA • D

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  • 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

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  • Stansbury

    NM • D

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  • 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

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  • 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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