US Senate floats full phase-out of solar, wind energy tax credits by 2028

WASHINGTON, June 16 (Reuters) - The U.S. Senate tax committee proposed a full phase-out of solar and wind energy tax credits by 2028, but extended the incentive to 2036 for Trump administration-favored hydropower, nuclear and geothermal energy, according to a draft bill circulated on Monday.

The draft released by the committee chair, Republican Senator Mike Crapo, would begin phasing out tax credits enshrined by the Biden-era 2022 Inflation Reduction Act for solar and wind energy in 2026 by reducing the incentive to 60% of the credit's value and ending it by 2028.

It would grant hydropower, nuclear and geothermal facilities 100% of the credit until 2033, and then phase it out to zero by 2036, according to the draft.