The Inflation Reduction Act of 2022 extended and expanded federal tax credits for solar, wind, and other clean energy projects, with an estimated cost of roughly $370 billion over ten years according to the Congressional Budget Office.
Reuters reported solar developers are rushing to qualify projects before a July 4 deadline set by the Trump administration, with the pipeline large enough to nearly double current U.S. solar capacity.
The U.S. Energy Information Administration reports that solar and wind together accounted for about 17 percent of U.S. electricity generation in 2024, up from roughly 5 percent in 2015.
Supporters of the credits argue they lower consumer electricity costs and reduce emissions, while critics argue they distort markets and shift costs to taxpayers regardless of project performance.
Changes to the credits require congressional action or administrative rulemaking on eligibility, with several provisions tied to domestic-content and labor requirements added in 2022.