Geothermal and nuclear could lose big under GOP tax proposal

AI generated summary

The recent House Ways and Means budget proposal threatens to undermine the Inflation Reduction Act, potentially stalling the growth of renewable energy sources like solar, wind, and storage, while also negatively impacting electric vehicle adoption and clean-energy manufacturing. The proposal includes stringent requirements that could render key incentives for carbon-free energy sources, including nuclear and advanced geothermal projects, ineffective. This could hinder the financial viability of these early-stage projects, which are essential for developing a reliable carbon-free energy industry.

Furthermore, the proposal aims to end the 45U nuclear power tax credit three years early, which could disadvantage nuclear projects significantly. While some Republican lawmakers have expressed concerns about the extent of the proposed tax-credit cuts and are advocating for adjustments, the overall direction of the proposal raises questions about the future of nuclear and geothermal energy initiatives. The ongoing efforts by the Trump administration to dissolve supportive energy programs add to the uncertainty surrounding the energy landscape, contrasting sharply with claims of promoting American energy dominance.