Republican lawmakers in the US have introduced the American Energy Dominance Act to extend and revise clean energy tax credit timelines
It focuses on preserving long-term certainty for the Section 45Y Clean Electricity Production Credit and Section 48E Clean Electricity Investment Credit
The focus is on providing long-term certainty for investors and project developers
Republican lawmakers in the US have introduced the American Energy Dominance Act, which, if passed, would extend the timeline for clean energy tax credits that are set to phase out earlier under the One Big Beautiful Bill Act (OBBBA).
Congressman Brian Fitzpatrick, who introduced the bill along with Mike Lawler, Max Miller, and Mike Carey, said it has been developed in direct partnership with the North America’s Building Trades Unions (NABTU). It aims to restore key energy and efficiency tax incentives that support lower costs, strengthen domestic supply chains, support well-paying union jobs, and drive long-term investment in American energy infrastructure.
For the clean energy industry, the proposed American Energy Dominance Act bill specifically focuses on preserving long-term certainty for Section 45Y Clean Electricity Production Credit (also known as Production Tax Credit or PTC) and Section 48E Clean Electricity Investment Credit (also known as Investment Tax Credit or ITC).
Introduced under the Biden-era Inflation Reduction Act (IRA), both tax codes offer technology-neutral tax credits, including for wind, solar, nuclear, hydropower, geothermal, and battery storage. Under the OBBBA, only solar and wind energy projects that enter construction before July 4, 2026, and are placed in service by December 31, 2027, are eligible for these credits (see Trump Signs Executive Order To End Green Energy Subsidies).
In February 2026, the US Internal Revenue Service (IRS) issued guidance saying that a clean energy/power generation facility/energy storage project that entered construction after December 31, 2025, and received material assistance from a Prohibited Foreign Entity (PFE) will not be eligible for Section 45Y and 48E credits (see US Treasury Tightens Clean Energy Tax Credit Eligibility Under FEOC Guidance).
According to the bill text, Section 45Y credits could remain in place until annual US power-sector emissions fall to 25% or less of 2022 levels, instead of phasing out under the current framework. For Section 48E, the legislation proposes removing the provision that cuts off eligibility for projects placed in service after December 31, 2027.
The legislation will restore the ‘certainty’ needed to move projects forward, stated the Congressmen. “Providing long-term certainty in our tax code is essential for American energy dominance,” said Congressman Max Miller. “By extending these critical credits, we are ensuring that businesses and families have the stability they need to invest in lower-cost energy solutions, strengthening our domestic supply chains and keeping the United States competitive on the global stage.”
