HR310-119

What This Bill Does

The Restoring Energy Market Freedom Act repeals many energy-related tax credits in the Internal Revenue Code. It strikes sections 45, 45J, 45Q, 45U, 45V, 45X, 45Y, 48, 48A, 48B, 48C, 48D, and 48E and removes their table entries. That covers credits associated with renewable electricity, advanced nuclear, carbon oxide sequestration, zero-emission nuclear power, clean hydrogen, advanced manufacturing production, clean electricity production, energy property, advanced coal, gasification, qualifying advanced energy projects, advanced manufacturing investment, and clean electricity investment. The bill then cleans up section 38 general business credit references, cross-references in sections such as 25, 30C, 45K, 45L, 45Z, 49, 50, 56A, 59A, 142, 168, 179D, 409, and 501(c)(12), and revises elective payment and credit transfer rules in sections 6417 and 6418 to remove repealed credits while retaining narrower applicable-entity and election rules. It changes the clean fuel production credit definition of qualified facility to a facility used for transportation fuel production. The amendments apply to taxable years beginning after December 31, 2024.

Who Benefits and How

Federal taxpayers benefit if repealed clean-energy credits reduce federal revenue losses after 2024. Fossil fuel producers benefit competitively if rival clean-energy and carbon-management subsidies are eliminated. Energy projects not relying on tax credits benefit if the market has fewer federally subsidized competitors. IRS tax administrators benefit from eventual simplification after numerous energy credit provisions are removed.

Who Bears the Burden and How

Renewable electricity developers lose section 45, 45Y, 48, and 48E production or investment credit support. Carbon capture projects lose section 45Q credit support. Nuclear power facilities lose advanced nuclear and zero-emission nuclear credit provisions. Hydrogen producers lose section 45V clean hydrogen credit support. Advanced manufacturing companies lose section 45X and 48D credit support. Public power entities, Tribal governments, and tax-exempt organizations lose elective-pay access for repealed credits. Tax credit buyers lose transferability opportunities for the repealed credits.

Key Provisions

• Repeals sections 45, 45J, 45Q, 45U, 45V, 45X, 45Y, 48, 48A, 48B, 48C, 48D, and 48E.
• Removes repealed credits from the general business credit, basis, depreciation, minimum-tax, and cross-reference provisions.
• Modifies section 45Z qualified facility language and related references.
• Narrows elective payment and transferability rules by removing repealed credits from sections 6417 and 6418.
• Applies the amendments to taxable years beginning after December 31, 2024.