July 3, 2025
In a significant political maneuver, President Donald Trump has secured the support of hard-line House conservatives for the party's megabill, promising stringent enforcement of renewable energy tax credit regulations. This pledge focuses on ensuring that wind and solar projects fully comply with the construction requirements necessary to qualify for these credits under the Inflation Reduction Act.
Representative Ralph Norman (R-S.C.), a key member of the House Freedom Caucus, explained Trump's commitment during a CNBC interview on Thursday. "He’s going to use his executive powers to verify that companies claiming solar credits are genuinely initiating construction as they claim," Norman stated. This rigorous verification process aims to prevent any misrepresentation of construction starts, which has been a point of contention among conservatives.
Earlier this week, the Senate passed its version of the budget reconciliation bill, incorporating a compromise on the phaseout schedule of incentives for renewable energy projects stipulated by the 2022 climate law enacted by Democrats. Unlike the House version, which allowed only 60 days for projects to begin construction, the Senate version extends this period to one year, with the requirement that projects be operational by 2027.
Conservatives have voiced opposition to the "safe harbor" clause of the bill, which permits projects to qualify for credits if they begin construction by incurring 5 percent of total project costs. This clause, they argue, could be exploited by merely starting minimal work and claiming to have commenced construction.
Norman highlighted that President Trump had promised to address these loopholes, particularly in the permitting processes, although specific details were not disclosed. "The president’s assurances on enforcing these regulations were pivotal in gaining conservative support," he added.
Representative Tim Burchett (R-Tenn.) also acknowledged on Thursday that Trump had responded to conservative concerns about the energy sector by affirming that the administration would stringently enforce the construction timelines for phasing out the credits. "That was huge," Burchett remarked, indicating the significance of Trump’s commitment to conservative lawmakers.
The White House has yet to respond to requests for comment on these discussions.
The conservative faction's support, bolstered by Trump's enforcement promises, marks a crucial step in the legislative process, potentially impacting the future implementation of renewable energy projects across the United States.