Energy tax credit restoration bill submitted to Congress

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A bill, the Energy Bills Relief Act, was introduced to the U.S. Congress on March 18, 2026. The 419-page bill explicitly rolls back any changes made by last year’s One Big Beautiful Bill to clean energy tax credits.

The bill was introduced by U.S. Representatives Sean Casten (IL-06) and Mike Levin (CA-49), co-chairs of the “Clean Energy Deployment Task Force.” Noted below from the filings from the Representatives, the bill aims to the lower energy costs by focusing on:

  • Reinstating tax credits for home and system-wide energy improvements
  • Incentivizing utility companies to save consumers’ money by rewarding them for making their systems more efficient, thereby lowering bills
  • Providing financial assistance to American families to make sure their power isn’t shut off
  • Cracking down on price gouging, so energy companies can’t take advantage of you to boost their profits
  • Ensuring that facilities like data centers are paying for their own costs because it’s not fair for their expenses to be pushed onto your household if one opens in your area

In its second section, the bill reverses three Trump administration policies. It would reverse any grant terminations that occurred after January 19, 2025 at the Department of Energy, Environmental Protection Agency, and Department of Transportation based on a change in administration policy goals. The bill also targets procedural actions taken by the Trump administration to slow the progress of projects.

The bill devotes significant attention to provisions focused on upgrading the power grid to a nationwide resource, rather than the current regional structure. This includes a transmission tax credit, interregional planning, minimum transfer capability requirements, and more Federal Energy Regulatory Commission jurisdiction to help implement these upgrades.

Other items in the legislation include:

  • Expedited generator interconnection
  • Advanced transmission technologies
  • $2.1 billion for electricity transformers
  • Streamlining permitting of distributed energy
  • 60 GW of capacity on public land by 2030
  • Geothermal investment support
  • Offshore energy development

There has been tax credit reinstatement talk among Republicans in Congress recently. Solar power is generally supported across the aisle and annual polling continually shows that solar is the most popular energy source in the United States.

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