To amend the Internal Revenue Code of 1986 to repeal green energy tax subsidies.
Sponsors
Legislative Progress
IntroducedMr. Lee introduced the following bill; which was read twice …
Summary
What This Bill Does
The Energy Freedom Act systematically repeals all major tax credits, deductions, and incentives for clean energy, electric vehicles, and energy efficiency that were established primarily through the Inflation Reduction Act of 2022 and prior legislation. The repeals would take effect for property placed in service or activities occurring after December 31, 2025. Additionally, the bill eliminates the petroleum excise tax that funds the Superfund and Oil Spill Liability Trust Fund.
Who Benefits and How
Oil and petroleum companies benefit significantly through the elimination of the petroleum excise tax, directly reducing their costs per barrel of crude oil and petroleum products. Traditional fossil fuel power generators (coal and natural gas plants) gain a competitive advantage as their renewable energy competitors lose production and investment tax credits worth up to 30% of project costs. Gasoline vehicle manufacturers benefit as electric vehicle tax credits of up to $7,500 per vehicle are eliminated, removing a price advantage for EV competitors.
Who Bears the Burden and How
The renewable energy industry faces major losses: solar and wind developers lose production tax credits (per-kWh payments) and investment tax credits (up to 30% of project costs), significantly reducing project economics. Electric vehicle manufacturers and buyers lose credits worth up to $7,500 for new EVs and $4,000 for used EVs, making EVs less affordable. Homeowners lose credits of up to $3,200 annually for energy-efficient home improvements and up to 30% of costs for rooftop solar installations. The Hazardous Substance Superfund and Oil Spill Liability Trust Fund lose their primary funding source from the petroleum tax, potentially shifting cleanup costs to taxpayers.
Key Provisions
- Repeals the $7,500 new clean vehicle credit (Section 30D) and $4,000 used EV credit (Section 25E), eliminating consumer incentives for electric vehicle purchases
- Eliminates the renewable electricity production tax credit (Section 45) and investment tax credit (Section 48), removing the primary federal incentives for wind, solar, and other renewable energy projects
- Repeals the residential clean energy credit (Section 25D) for rooftop solar, home batteries, and geothermal systems, and the home energy improvement credit (Section 25C) for heat pumps, insulation, and efficient windows
- Eliminates the clean hydrogen production credit (Section 45V), carbon capture credit (Section 45Q), and zero-emission nuclear credit (Section 45U)
- Repeals the advanced manufacturing production credit (Section 45X) for domestic solar, battery, and wind component manufacturing
- Eliminates biodiesel, renewable diesel, and sustainable aviation fuel credits
- Removes the petroleum excise tax that funds environmental cleanup trust funds
Evidence Chain:
This summary is derived from the structured analysis below. See "Detailed Analysis" for per-title beneficiaries/burden bearers with clause-level evidence links.
Primary Purpose
This bill repeals tax credits and deductions for green energy, clean vehicles, renewable fuels, and carbon sequestration established primarily by the Inflation Reduction Act, effective for property placed in service or activities after December 31, 2025.
Policy Domains
Legislative Strategy
"Systematically repeal all green energy tax incentives introduced by the Inflation Reduction Act and prior legislation by striking relevant sections from the Internal Revenue Code"
Likely Beneficiaries
- Petroleum and oil refining industry (tax on petroleum repealed)
- General taxpayers (reduced tax expenditures)
- Fossil fuel industries (competitive advantage restored)
Likely Burden Bearers
- Solar and wind energy companies (loss of production and investment tax credits)
- Electric vehicle manufacturers and buyers (loss of clean vehicle credits)
- Biofuel and sustainable aviation fuel producers (loss of production credits)
- Carbon capture companies (loss of 45Q credits)
- Nuclear power plants (loss of zero-emission nuclear credit)
- Clean hydrogen producers (loss of 45V credits)
- Home solar installers and homeowners (loss of residential clean energy credit)
- EV charging station operators (loss of refueling property credit)
- Energy efficient home builders (loss of new energy efficient home credit)
- Commercial building owners pursuing energy efficiency (loss of 179D deduction)
Bill Structure & Actor Mappings
Who is "The Secretary" in each section?
We use a combination of our own taxonomy and classification in addition to large language models to assess meaning and potential beneficiaries. High confidence means strong textual evidence. Always verify with the original bill text.
Learn more about our methodology