Bill · S. 1721· Senate(119-S-1721)
Energy Freedom Act
- Introduced
- 5/13/2025
- Last activity
- 5/13/2025 — Read twice and referred to the Committee on Finance.
- Sponsored by
- Mike Lee
- Cosponsors
- None
- Introduced
- In Committee
What this bill would do
The Energy Freedom Act is a bill designed to amend the Internal Revenue Code of 1986. Its primary purpose is to repeal various green energy tax subsidies. The legislation targets a wide range of credits, including those for home improvements, clean vehicles, and renewable electricity. It also includes provisions to repeal incentives for various fuels and manufacturing credits. Additionally, the bill seeks to repeal the tax on petroleum. Most of these changes are set to take effect after December 31, 2025.
Yes
Does this reduce what the federal government spends?+5
The bill reduces federal spending by repealing numerous renewable energy tax credits and subsidies.
Is this likely to lower the price at the pump?+3
The repeal of the tax on petroleum is intended to lower energy costs at the pump.
Would high-income households be better off under this?+1
The repeal of various credits may result in lower tax liabilities for very high earners who do not rely on these specific incentives.
The opposite· 3 of 13
Does this put more money into wind, solar and other renewable power?-8
The bill repeals major investment and production credits for renewable energy, solar, and wind.
Does this cut the pollution that drives climate change?-7
The repeal of clean energy, hydrogen, and carbon sequestration credits removes incentives for reducing carbon output.
Does this reduce how much oil, gas and coal is produced?-6
The repeal of green subsidies may result in less pressure to transition away from fossil fuels.
Who it would affect, and how
Potential Positive Impacts for People
- Repeal of Petroleum Tax: The bill includes a repeal of the tax on petroleum (Section 23), which takes effect on January 1, 2026.
Potential Negative Impacts for People
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Loss of Home Improvement Credits: The repeal of the energy efficient home improvement credit (Section 2) and the new energy efficient home credit (Section 11) means individuals may no longer receive these tax benefits for property placed in service after December 31, 2025.
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Loss of Residential Clean Energy Benefits: The repeal of the residential clean energy credit (Section 3) removes benefits for expenditures paid or incurred in taxable years beginning after December 31, 2025.
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Loss of Vehicle Credits: Several vehicle-related incentives are removed, including the previously-owned clean vehicles credit (Section 4), the alternative fuel vehicle refueling property credit (Section 5), the clean vehicle credit (Section 6), and the qualified commercial clean vehicles credit (Section 15). These changes generally apply to vehicles acquired after December 31, 2025.
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Loss of Fuel and Electricity Incentives: The bill repeals credits for various fuels and electricity production, such as the second generation biofuel producer credit (Section 7), incentives for biodiesel, renewable diesel, and alternative fuels (Section 8), sustainable aviation fuel credit (Section 9), and electricity produced from certain renewable resources credit (Section 10).
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Loss of Industrial and Manufacturing Credits: Various production credits are repealed, including clean hydrogen production (Section 14), advanced manufacturing production (Section 16), clean electricity production (Section 17), clean fuel production (Section 18), and qualifying advanced energy project credit (Section 20).
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Loss of Commercial and Investment Credits: The bill repeals the clean electricity investment credit (Section 21), the energy credit (Section 19), and the energy efficient commercial buildings deduction (Section 22).
Groups and Interests Ranking
Every group the model scored this bill for, from -10 to +10. Hover a score for the reason it gave.
- Environment Energy And Infrastructure
- Reduces Gas Prices+3Increases Renewable Energy Investment-8Reduces Carbon Emissions-7Reduces Fossil Fuel Production-6Improves Environmental Protections-5
- Demographic And Interest Groups
- Good For High Income Households+1Good For Business Owners-4Good For Low Income Households-3Good For Middle Class Households-3Good For Urban Residents-2
- Economy And Finance
- Reduces Government Spending+5Increases Job Creation-4Reduces Middle Class Taxes-3Improves Economic Growth-2Reduces Small Business Taxes-2
- Social Issues And Justice
- Improves Affordable Housing-2
- 5/13/2025
- Read twice and referred to the Committee on Finance.
- Introduced in Senate
One bill Congress.gov lists as related to this one — companions in the other chamber, earlier versions, and bills this one absorbed or was folded into.