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Senate removes excise tax on renewable energy industry from Trump domestic policy bill

Senate removes excise tax on renewable energy industry from Trump domestic policy bill

CBSN
Tuesday, July 01, 2025 10:55:07 PM UTC

The Senate bill containing President Trump's domestic policy agenda at the last minute eliminated a new excise tax that would have hammered the renewable energy industry, a move that likely ensured Republican Sen. Lisa Murkowski of Alaska would back the measure. 

The excise tax would have been imposed on wind and solar energy projects constructed with a certain percentage of materials sourced from prohibited foreign countries, like China. Consumers would see their energy prices rise by around 8% to 10%, and the provision would have cost clean energy businesses an additional $4-$7 billion by 2036, according to an analysis by the American Clean Power Association. 

The tax was designed to boost domestic manufacturing, but developing these projects by working around Chinese components was likely to be cost prohibitive.

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