A bill to amend the Internal Revenue Code of 1986 to extend the clean electricity production credit and the clean electricity investment credit based on increases in the price of, and demand for, electricity, and for other purposes. | ChamberLight
Bills · S 4175
IN COMMITTEE· 119TH CONGRESS
Senate BillS 4175Taxation
A bill to amend the Internal Revenue Code of 1986 to extend the clean electricity production credit and the clean electricity investment credit based on increases in the price of, and demand for, electricity, and for other purposes.
INTRO MAR 24· LAST ACTION MAR 24
READING
4MIN
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Introduced only
LEGISLATIVE PROGRESS
STEP 2 / 8
Introduced
In Committee
Reported
Passed Senate
Passed House
Conference
To President
Became Law
WHAT THE BILL DOES
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Currently, tax credits for clean energy and energy efficiency are set to expire or gradually decrease. If this bill becomes law, it fundamentally changes that by linking the continuation of these incentives to market conditions—specifically, to increases in electricity prices or demand. This means that if energy costs rise significantly for consumers, the government would automatically make incentives available to encourage more clean energy production and home energy efficiency. This could lead to more investment in clean energy projects and help more homeowners afford energy-saving upgrades, potentially easing future energy price shocks and supporting the transition to a cleaner energy grid.
If the bill does not become law, the existing tax credit phase-out schedules would continue as planned. This could result in a decrease in new clean energy projects as incentives diminish, and homeowners might not have renewed federal support for energy-efficient improvements when electricity costs become a bigger burden.
KEY PROVISIONS
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PROVISION 01
Extends the Clean Electricity Production and Investment Credits for businesses, making them available for 6 years after a significant increase in national electricity prices or demand.
Offers long-term financial stability for clean energy projects, encouraging more investment in renewable energy infrastructure.
PROVISION 02
Renews the Energy Efficient Home Improvement Credit and Residential Clean Energy Credit for individuals for two years if there's a significant increase in national electricity prices or demand.
Provides renewed financial incentives for homeowners to adopt clean energy or improve efficiency, especially during periods of high energy costs.
PROVISION 03
Eliminates restrictions that currently deny production and investment tax credits for wind and solar projects that use certain equipment leasing arrangements.
Broadens eligibility for tax credits, potentially making it easier for more clean energy projects to get financing and be built.
PROVISION 04
Defines a 'price or demand increase year' as a calendar year where the national average electricity price rises by more than 2% or total electricity sales increase, based on data from the Energy Information Administration.
Sets objective, data-driven triggers for extending clean energy incentives, providing transparency and predictability for when these extensions will occur.
IN COMMITTEE· 119TH CONGRESS · FINANCE COMMITTEE · INTRODUCED MAR 24, 2026
Senate BillS 4175Taxation
A bill to amend the Internal Revenue Code of 1986 to extend the clean electricity production credit and the clean electricity investment credit based on increases in the price of, and demand for, electricity, and for other purposes.
Currently, tax credits for clean energy and energy efficiency are set to expire or gradually decrease. If this bill becomes law, it fundamentally changes that by linking the continuation of these incentives to market conditions—specifically, to increases in electricity prices or demand. This means that if energy costs rise significantly for consumers, the government would automatically make incentives available to encourage more clean energy production and home energy efficiency. This could lead to more investment in clean energy projects and help more homeowners afford energy-saving upgrades, potentially easing future energy price shocks and supporting the transition to a cleaner energy grid.
If the bill does not become law, the existing tax credit phase-out schedules would continue as planned. This could result in a decrease in new clean energy projects as incentives diminish, and homeowners might not have renewed federal support for energy-efficient improvements when electricity costs become a bigger burden.
KEY PROVISIONS
AI-extracted
high
Extends the Clean Electricity Production and Investment Credits for businesses, making them available for 6 years after a significant increase in national electricity prices or demand.
Offers long-term financial stability for clean energy projects, encouraging more investment in renewable energy infrastructure.
high
Renews the Energy Efficient Home Improvement Credit and Residential Clean Energy Credit for individuals for two years if there's a significant increase in national electricity prices or demand.
Provides renewed financial incentives for homeowners to adopt clean energy or improve efficiency, especially during periods of high energy costs.
med
Eliminates restrictions that currently deny production and investment tax credits for wind and solar projects that use certain equipment leasing arrangements.
Broadens eligibility for tax credits, potentially making it easier for more clean energy projects to get financing and be built.
med
Defines a 'price or demand increase year' as a calendar year where the national average electricity price rises by more than 2% or total electricity sales increase, based on data from the Energy Information Administration.
Sets objective, data-driven triggers for extending clean energy incentives, providing transparency and predictability for when these extensions will occur.
Determination of whether 2025 qualifies as a 'price or demand increase year'
before January 1 of the first calendar year beginning after the date on which the Electric Power Annual (or any similar report) is published with respect to such year
Determination of whether any subsequent calendar year qualifies as a 'price or demand increase year'
taxable years beginning after the date of enactment of this Act
Effective date for eliminating denial of credit for wind and solar leasing arrangements
GLOSSARY
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Clean Electricity Production Credit (Section 45Y)
A federal tax credit for businesses that generate electricity using qualified clean energy resources, often based on the amount of electricity produced.
Clean Electricity Investment Credit (Section 48E)
A federal tax credit for businesses that invest in qualified clean electricity generation facilities and energy storage technologies.
Energy Efficient Home Improvement Credit (Section 25C)
A federal tax credit for homeowners who make certain energy-efficient improvements to their primary residence, such as installing new insulation, windows, or energy-efficient heating and cooling systems.
Residential Clean Energy Credit (Section 25D)
A federal tax credit for homeowners who install renewable energy property in their homes, such as solar panels, wind turbines, geothermal heat pumps, or fuel cell property.
Internal Revenue Code of 1986
The primary body of federal tax law in the United States, which this bill proposes to amend.
Electric Power Annual
A yearly report published by the Energy Information Administration that provides data on electricity generation, consumption, prices, and other statistics for the U.S. electric power industry.
ACTION TIMELINE
2 EVENTS
MAR 24
Introduced in Senate
INTROREFERRAL
MAR 24
Read twice and referred to the Committee on Finance.
An independent agency of the U.S. Department of Energy that collects, analyzes, and disseminates energy information to promote sound policymaking and public understanding of energy and its interaction with the economy and the environment.
Taxable year
The annual accounting period for which income taxes are computed, typically the calendar year for individuals or a fiscal year for businesses.
