Final GOP bill kneecaps renewables and hydrogen, but lifts nuclear and geothermal

In a significant move, Republican lawmakers approved a reconciliation act on Thursday that seeks to roll back key provisions of the Inflation Reduction Act. The bill narrowly passed with a vote of 218-214, with two Republicans dissenting. It now awaits the signature of President Donald Trump, who is anticipated to endorse it. Under the new legislation, incentives for solar, wind, and clean hydrogen projects will be diminished, while support for nuclear and geothermal energy will see some IRA benefits retained. This final iteration of the bill largely mirrors the proposal put forth by the Senate Finance Committee back in mid-June, albeit with slightly extended deadlines for claiming clean energy tax credits. To qualify for these tax credits, solar and wind developers must either connect to the grid by the end of 2027 or initiate new projects within a year of the bill's passage. The data center industry may bear the brunt of these changes, as solar, wind, and battery options have previously provided an affordable and rapid power source. Solar farms can often be operational within 12 to 18 months, while delays for new natural gas turbines can extend into the early 2030s. Moreover, climate technology startups are bracing for challenges, particularly those focused on green hydrogen. Tax credits amounting to $3 per kilogram of hydrogen are now at risk of expiring sooner than expected, with a potential cutoff at the end of 2027 instead of the previously scheduled phase-out. While geothermal, nuclear, and battery storage tax incentives are set to last until the end of 2033, new regulations regarding 'foreign entities of concern' may complicate the process of obtaining these credits further.