Solar Stocks Come Under Heat After Senate Tax Bill Sets Early Expiration Date For Incentives

Solar stocks tumbled in premarket trading on Tuesday after the U.S. Senate Republicans revealed a tweaked version of Donald Trump’s flagship tax bill that ended tax credits for solar and wind projects earlier than a few other sources.

Shares of Enphase Energy, SolarEdge, and Sunrun fell between 15% and 25%, while First Solar, the top U.S. solar panel maker, was down 8%.

According to the bill, tax credits for wind and solar will still expire after 2028, much to the disappointment of the solar industry. The industry lobbied aggressively to keep the incentives in place, hoping lawmakers would be lenient, as many of the renewable energy projects are located in states that Trump won in 2024.

The so-called ‘Big Beautiful Bill’ will allow tax breaks for other power sources, such as nuclear, hydropower, and geothermal, which will run until 2036.

The American Clean Power Association said the bill “would increase household electricity bills and threaten hundreds of thousands of jobs across the country.”

The legislation will again reach the House after the Senate passes it. Trump has set a July 4 deadline for Congress to pass the bill.

However, Republicans are running out of time to pass the bill as the party is divided into two factions.

The party's fiscal hawks have requested deeper spending cuts. In contrast, others advocate for no alterations to social safety nets, including the Medicaid healthcare program aimed at lower-income Americans.

Trump’s party holds only a narrow majority in both chambers of Congress, so it will be difficult to pass the legislation if a few members hold out.

The Senate version of the bill will also eliminate a $7,500 credit for electric vehicle purchases, 180 days after the bill becomes law. The House bill set the deadline at the end of the year for most vehicles.

Trump and his former aide, Elon Musk, had previously sparred over the bill.

Also See: Trump-Trade Play TMC Stock Surges To Fresh 4-Year High After Korea Zinc Buys Stake: Retail Eyes Start of Bigger Rally

For updates and corrections, email newsroom[at]stocktwits[dot]com.

Share

·

Add us on