House Democrats Want Clean Energy Tax Credits Back

A new bill would reinstate incentives from the Inflation Reduction Act and provide assistance for consumer electricity costs.

U.S. House Democrats proposed legislation on Wednesday to restore clean energy tax credits revoked by Republicans last year through the One Big Beautiful Bill Act. 

The “Energy Bills Relief Act,” signed by more than half of House Democrats, 122 in all, seeks to establish new incentives for renewable projects and to protect consumers from rising electricity costs due to grid demands from large energy users such as data centers. 

In addition to re-upping clean energy credits introduced in the Inflation Reduction Act of 2022, the sweeping legislation would reinstate grant money for renewable energy projects that the Trump administration terminated and authorize $2.1 billion to address shortages of transformers and other grid technologies. 

The bill also seeks to block executive orders curbing renewable energy projects and invoking energy emergencies to delay fossil fuel power plant retirements. It would expand and reissue financial assistance programs for low-income and rural Americans and instruct the U.S. Department of the Interior and U.S. Forest Service to permit 60 gigawatts of wind, solar and geothermal development on public lands by 2030.

It’s unlikely the bill would pass in a Republican-controlled Congress. However, it could serve as a foundation for future legislation if Democrats regain the House or Senate in the November midterms. 

One of the bill’s sponsors, U.S. Rep. Mike Levin (D-Calif.), said it looks to prioritize consumer affordability over profits and ensure that large energy users like data centers don’t pass costs onto families and small businesses. “American families were promised lower energy costs,” Levin said.

Electric bills in the U.S. rose 5 percent last year overall, with double-digit increases in some states, according to an Inside Climate News analysis of federal data. The Trump administration’s moves to undercut cheaper renewable energy aren’t helping, Levin said.

“The Energy Bills Relief Act changes that equation entirely and delivers the real, comprehensive relief that families across this country deserve,” Levin said.

The White House did not immediately respond to a request for comment.

The proposed measure would direct states to consider adopting a standard to prevent residential consumers from paying for the grid upgrades that large load facilities require. 

This legislation is well-timed because people need relief, said Joanna Slaney, vice president for political and government affairs at the Environmental Defense Fund.

The Trump administration “is blocking the energy sources that are the cheapest and fastest to deploy,” Slaney said in a statement. “The Energy Bills Relief Act would get needed affordable, clean and reliable energy onto the grid, significantly improve grid reliability and help people pay their electricity bills.”

GoodPower, a group focused on decarbonizing the global economy, sees an opportunity to modernize an outdated system while addressing the rising costs. 

“This isn’t a red or blue issue—Americans across the political spectrum widely support solar energy and want leaders to act to lower household costs,” GoodPower CEO Leah Qusba said in a statement. 

Cover photo:  An aerial view of the Altamont Pass wind farm on Jan. 13 in Livermore, Calif. Credit: Justin Sullivan/Getty Images