
President Donald Trump is demanding the Senate terminate green energy tax credits enacted under former President Joe Biden, throwing a potential wrinkle in Senate Majority Leader John Thuneâs plans to make significant headway on passing the âone big, beautifulâ bill next week.
The president sent a Truth Social post Saturday afternoon slamming intermittent renewable energy and excoriating the Senateâs proposal for failing to completely slash the Biden-era green energy tax credits. Trumpâs demand that the Senate immediately end all âgreen tax creditsâ is likely to boost conservative Republicans pushing for a complete termination of the green energy tax breaks and give heartburn to moderates who have said the proposed reforms are too stringent.
This marks the latest hurdle for Senate Republicans as Thune has floated holding a âvote-a-ramaâ to pass the presidentâs landmark bill as early as Wednesday. GOP senators are still negotiating changes to contentious provisions, such as reforms to Medicaid, in their draft proposal. The Senate parliamentarian, an appointee of the late Democratic Senate Leader Harry Reid, is also beginning to strike key deficit-reducing provisions from their tax and spending bill, which could also pose problems as fiscal hawks demand greater reductions to deficit spending.
âI HATE âGREEN TAX CREDITSâ IN THE GREAT, BIG, BEAUTIFUL BILL,â the president wrote in all capital letters. âThey are largely a giant SCAM. I would much prefer that this money be used somewhere else, including reductions. âAnywhereâ would be preferable!â
âWindmills, and the rest of this âJUNK,â are the most expensive and inefficient energy in the world, is destroying the beauty of the environment, and is 10 times more costly than any other energy,â Trump added. âNone of it works without massive government subsidy (energy should NOT NEED SUBSIDY!). Also, it is almost exclusively made in China!!! It is time to break away, finally, from this craziness!!!â
Trump frequently called for the complete repeal of the âGreen New Scam,â his nickname for certain provisions of Bidenâs Inflation Reduction Act (IRA), on the campaign trail. No Republican lawmakers voted for the legislation when Biden signed it into law in August 2022.
The president had stayed largely silent on the fate of the tax credits since beginning his second term as congressional Republicans debated how aggressively to roll back the Biden-era green energy subsidies.
Trumpâs decision to weigh into the debate could apply enough pressure on senators to rewrite the bill to pursue an immediate phase out of the green energy tax credits.
âIt is time to break away, finally, from this craziness!!!,â Trump said at the end of his Truth Social post.
Though the Senateâs proposal would almost immediately end tax credits for electric vehicles, rooftop solar panels and hydrogen fuels, the upper chamber rolled back House-passed language that moderate GOP senators arguedwent too far.
The Senate draft notably slowed phase out timelines for wind and solar tax credits by nixing a requirement that would force wind and solar projects to begin construction this year to qualify for the full credit amount. The draft bill also places fewer restrictions on companies using materials from China and allows project developers to transfer their tax credits to third parties, a tax maneuver that allows entities to better finance their project costs.
Energy advocate Alex Epstein, who has advocated for terminating the tax credits by the end of Trumpâs term, met with Senate Republicans Wednesday to discuss the upper chamberâs proposed reforms.
Though Epstein said certain GOP senators pushed back at the idea of being subsidy-free by 2028, he said he was âcautiously optimisticâ the Senate would move up termination deadlines for solar and wind subsidies.
âUnder the current Senate Finance proposal, there will still be wind subsidies in 2041 on Donald Trumpâs 95th birthday,â Epstein told reporters. âI think if he knew that he would not have considered this terminating the âGreen New Scam.ââ
Members of the conservative House Freedom Caucus, who warned the Senate that they would not accept âIRA Green New Scam rollbacksâ in the upper chamberâs proposal, cheered Trumpâs Truth post calling for a wholesale repeal of the green energy tax breaks.
âThe President gets it,â Republican Texas Rep. Chip Roy wrote Saturday on X. âCongress needs to ignore K street.â
Roy told reporters during a press call on June 17 that the Senateâs initial draft proposal that introduced slower phase outs of certain IRA tax credits was dead-on-arrival in the House.
The presidentâs sweeping tax and spending bill will have to pass the House for a second time following its passage in the Senate before Trump can sign it into law. He is demanding the bill on his desk by July 4.
Thune has voiced confidence that the Senate will do its part to quickly deliver the bill to the House for consideration despite looming challenges.
âAs we head into this next week, Iâm fully confident weâre going to be ready to roll,â Thune told Breitbartâs Matt Boyle on Saturday. âWe have to be, weâve got to deliver. And the one thing Iâve discovered in my time in Washington is if you donât put deadlines out there, nothing gets done, and this stuff can drag on and on endlessly.â
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