Four Republican representatives recently introduced The American Energy Dominance Act, to restore several energy and efficiency tax incentives cut by the One Big Beautiful Bill Act (OBBBA) in 2025. The OBBBA phased out many tax credits designed to incentivize massive increases in domestic energy.
The legislation was developed in direct partnership with the North America’s Building Trades Unions (NABTU) and introduced by Republican Reps. Brian Fitzpatrick (Penn.), Mike Lawler (New York), Max Miller (Ohio) and Mike Carey (Ohio)
Before passage, the tax credit changes in OBBBA were not fully supported across both parties. As the it approached the finish line, several Republicans put forth bills to ease clean energy cuts in the budget bill; however, the bill was passed with few modifications.
Since passage of the budget bill the trajectory of the U.S. solar industry has slowed. A downward trend in completion of solar projects was noted in the Solar Market Insight 2025 Year in Review report released by the Solar Energy Industries Association (SEIA) and Wood Mackenzie. The report found, for example, that tax credit changes brought by the OBBBA led to a 14% decline in installations in 2025 compared to the previous year.
The American Energy Dominance Act intends to help lower costs, strengthen domestic supply chains, drive long-term investment in energy infrastructure, and support good-paying union jobs.
The bill “reflects to frustration many Republicans feel with the chainsaw approach taken to clean energy and efficiency credits in the reconciliation bill and subsequent Administration actions,” Michael Parr, senior advisor at HillStaffer, a bipartisan consulting firm., told pv magazine USA.
What’s in the bill
Specifically, the American Energy Dominance Act aims to restore the expiration dates of 179D and 45L, both of which expired at the end of 2025. 179D is a deduction for building owners who place in service energy efficient commercial building property or energy efficient commercial building retrofit property. 45L is a tax credit that was available to contractors for eligible new or substantially reconstructed homes that meet applicable Energy Star or Department of Energy Efficient New Homes program requirements.
The bill also extends the 45V Clean Hydrogen Production Credit construction deadline from January 1, 2028, to January 1, 2033. Furthermore, the bill restores long-term certainty for the 45Y Clean Electricity Production Credit and 48E Clean Electricity Investment Credit. The OBBBA eliminated the phasedown for these credits and required that to receive these credits, solar projects had to begin construction on or before July 4, 2026; or be placed in service on or before December 31, 2027.
Furthermore the bill intends to “restore long-term certainty” by extending the deadline on 45Y and 45E, according to a statement from Fitzpatrick’s office. 45Y is the clean electricity production credit and 48E the clean electricity production credit, both of which are technology-neutral. A report from the Department of Energy had expected the technology-neutral credits, along with other Inflation Reduction Act and Bipartisan Infrastructure Law provisions, to save U.S. families up to $38 billion on electricity bills through 2030.
[Read the full bill text here.]The uncertainty brought by the OBBBA resulted in projects cancelled and jobs lost, according to E2, a non-partisan group that advocates for smart policies beneficial to the economy and the environment.
[Read Clean energy jobs grew three times faster than overall U.S. workforce, but federal obstruction puts growth at risk]“Amid soaring electricity costs and tens of billions in clean energy projects getting cancelled and delayed across the country, this is a modest – but smart – step back in the right direction,” said Bob Keefe, executive director of E2, nonpartisan group that advocates for smart policies beneficial to the economy and the environment.
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How would this bill effect the the development of utility scale solar projects?