A bill to amend the Internal Revenue Code of 1986 to extend the clean electricity production credit and the clean electricity investment credit based on increases in the price of, and demand for, electricity, and for other purposes.

Plain-English Summary

This bill proposes changes to existing federal tax law related to clean energy. Specifically, it would modify two existing tax credits — one for companies that *produce* electricity from clean sources (like wind or solar), and another for companies that *invest* in clean electricity infrastructure. The key change is that these credits would be extended or adjusted based on what's happening in the broader electricity market — particularly if electricity prices rise or if demand for electricity increases significantly.

The practical effect is that clean energy producers and investors could continue receiving federal tax incentives for a longer period than currently allowed, but only under certain market conditions tied to higher electricity prices or growing demand. Under current law, these credits are scheduled to phase out once clean electricity becomes widely established in the market. This bill would use price and demand signals as an alternative trigger to determine when — or whether — those credits continue.

This legislation would primarily affect energy companies, utilities, and investors involved in building or operating clean energy facilities such as solar farms, wind farms, and other non-fossil fuel power sources. Indirectly, it could also affect everyday electricity customers, since tax incentives for clean energy can influence how much clean energy gets built and potentially affect energy costs over time.

The bill was recently introduced in the Senate and referred to the Senate Finance Committee, which handles tax-related legislation. It has not yet been voted on, and its full budgetary and economic impacts would need to be independently evaluated before advancing further in the legislative process.