Post: The One, Big, Beautiful Bill passed by House of Representatives

The One, Big, Beautiful Bill passed by House of Representatives

The House of Representatives has passed “The One, Big, Beautiful Bill” (the “Bill”) that, if enacted, would make significant changes to the tax law.

Among other measures, the Bill, passed on May 22, aims to increase onshore and offshore oil and gas leases, spurs job growth, makes energy more affordable, and make America more independent. It makes provisions for substantial cutbacks to various tax credits created or expanded under the IRA, which, under current law, were generally available through the end of 2032.

While advanced nuclear facilities would only experience a one-year credit window cut under the Bill, other technologies that currently qualify under the “tech-neutral” Clean Electricity Production Tax Credit and the Clean Electricity Investment Tax Credit would be eliminated under the Bill if construction of the applicable facility did not begin before 60 days after enactment. Projects that begin construction within 60 days must also be placed in service by December 31, 2028 to remain eligible for the credit.

Eligible nuclear projects are exempted from the 60-day requirement and instead must only comply with the 2028 placed-in-service requirement. The legislation also specifically eliminates the credit for leased residential solar installations for any taxable year beginning after enactment.

The bill also rolls back a number of other programmes and provisions, such as the Greenhouse Gas Reduction Fund and funding to reduce air pollution, the programme for diesel emissions reductions, funding for the implementation of the American Innovation and Manufacturing Act, as well as the funds for investing in coastal communities and climate resilience.

The Bill is yet to pass the Senate, after which it would proceed to the US President’s desk to be signed into law.