Energy Freedom Act

Bill: 119-s-1721
Sponsor: full_name: Sen. Lee, Mike [R-UT]
Introduced: 2025-05-13
Policy area: Taxation
Latest action: action_date: 2025-05-13
text: Read twice and referred to the Committee on Finance.

Summaries:

tv_txt: II 119th CONGRESS 1st Session S. 1721 IN THE SENATE OF THE UNITED STATES May 13, 2025 Mr. Lee introduced the following bill; which was read twice and referred to the Committee on Finance A BILL To amend the Internal Revenue Code of 1986 to repeal green energy tax subsidies.

1. Short title; etc (a) Short title This Act may be cited as the Energy Freedom Act . (b) Amendment of 1986 Code Except as otherwise expressly provided, whenever in this Act an amendment or repeal is expressed in terms of an amendment to, or repeal of, a section or other provision, the reference shall be considered to be made to a section or other provision of the Internal Revenue Code of 1986. (c) Table of contents The table of contents of this Act is as follows: Sec. 1. Short title; etc. Sec. 2. Energy efficient home improvement credit repealed. Sec. 3. Residential clean energy credit repealed. Sec. 4. Previously-owned clean vehicles credit repealed. Sec. 5. Alternative fuel vehicle refueling property credit repealed. Sec. 6. Clean vehicle credit repealed. Sec. 7. Second generation biofuel producer credit. Sec. 8. Repeal of incentives for biodiesel, renewable diesel, and alternative fuels. Sec. 9. Sustainable aviation fuel credit repealed. Sec. 10. Electricity produced from certain renewable resources credit repealed. Sec. 11. New energy efficient home credit repealed. Sec. 12. Carbon oxide sequestration credit repealed. Sec. 13. Zero-emission nuclear power production credit repealed. Sec. 14. Clean hydrogen production credit repealed. Sec. 15. Qualified commercial clean vehicles credit repealed. Sec. 16. Advanced manufacturing production credit repealed. Sec. 17. Clean electricity production credit repealed. Sec. 18. Clean fuel production credit repealed. Sec. 19. Energy credit repealed. Sec. 20. Qualifying advanced energy project credit repealed. Sec. 21. Clean electricity investment credit repealed. Sec. 22. Energy efficient commercial buildings deduction repealed. Sec. 23. Repeal on tax on petroleum. Sec. 24. Repeal of sections relating to elective payment for energy property and electricity produced from certain renewable resources; transfer of credits. 2. Energy efficient home improvement credit repealed (a) In general Subpart A of part IV of subchapter A of chapter 1 is amended by striking section 25C (and by striking the item relating to such section in the table of sections for such subpart). (b) Conforming amendments (1) Section 1016(a) is amended by striking paragraph (33). (2) Section 6213(g)(2) is amended by striking subparagraphs (R) and (S). (c) Effective date The amendments made by this section shall apply to property placed in service in taxable years beginning after December 31, 2025. 3. Residential clean energy credit repealed (a) In general Subpart A of part IV of subchapter A of chapter 1 is amended by striking section 25D (and by striking the item relating to such section in the table of sections for such subpart). (b) Conforming amendments (1) Section 23(c)(1) is amended by striking and section 25D . (2) Section 25(e)(1)(C) is amended by striking sections 23 and 25D and inserting section 23 . (3) Section 1016(a) is amended by striking paragraph (34). (c) Effective date The amendments made by this section shall apply to expenditures paid or incurred in taxable years beginning after December 31, 2025. 4. Previously-owned clean vehicles credit repealed (a) In general Subpart A of part IV of subchapter A of chapter 1 is amended by striking section 25E (and by striking the item relating to such section in the table of sections for such subpart). (b) Conforming amendment Section 6213(g)(2) is amended by striking subparagraph (U). (c) Effective date The amendments made by this section shall apply to vehicles acquired after December 31, 2025. 5. Alternative fuel vehicle refueling property credit repealed (a) In general Subpart B of part IV of subchapter A of chapter 1 is amended by striking section 30C (and by striking the item relating to such section in the table of sections for such subpart). (b) Conforming amendments (1) Section 38(b) is amended by striking paragraph (25). (2) Section 55(c)(3) is amended by striking sections 30C(d)(2) and and inserting section . (3) Section 1016(a) is amended by striking paragraph (36). (4) Section 6501(m) is amended by striking 30C(e)(4), . (5) Section 244(b) of the Energy Independence and Security Act of 2007 ( 42 U.S.C. 17052(b) ) is amended by striking paragraph (6). (c) Effective date The amendments made by this section shall apply to property placed in service after December 31, 2025. 6. Clean vehicle credit repealed (a) In general Subpart B of part IV of subchapter A of chapter 1 is amended by striking section 30D (and by striking the item relating to such section in the table of sections for such subpart). (b) Conforming amendments (1) Section 166(b)(5)(A)(ii) of title 23, United States Code, is amended by inserting (as in effect on the day before the enactment of the Energy Freedom Act ) after section 30D(d)(1) of the Internal Revenue Code of 1986 . (2) Section 30B(d)(3) is amended by striking subparagraph (D). (3) Section 38(b) is amended by striking paragraph (30). (4) Section 1016(a) is amended by striking paragraph (37). (5) Section 6213(g)(2) is amended by striking subparagraph (T). (6) Section 6501(m) is amended by striking 30D(f)(6), . (c) Effective date The amendments made by this section shall apply to vehicles placed in service after December 31, 2025. 7. Second generation biofuel producer credit (a) In general Section 40 is amended— (1) in subsection (a)— (A) in paragraph (2), by adding plus at the end, (B) in paragraph (3), by striking plus at the end, and (C) by striking paragraph (4), (2) in subsection (b)— (A) in paragraph (4)(C), by striking (determined without regard to any qualified second generation biofuel production) , and (B) by striking paragraph (6), (3) in subsection (d)— (A) in paragraph (3)— (i) by striking subparagraph (D), and (ii) in subparagraph (E), by striking (C), or (D) and inserting or (C) , and (B) by striking paragraph (6), and (4) in subsection (e), by striking paragraph (3). (b) Conforming amendments (1) Section 168(l)(2)(A) is amended by inserting (as in effect on the day before the enactment of the Energy Freedom Act ) after 40(b)(6)(E) . (2) Section 4101(a)(1) is amended by inserting (as in effect on the day before the enactment of the Energy Freedom Act ) after 40(b)(6)(E) . 8. Repeal of incentives for biodiesel, renewable diesel, and alternative fuels (a) Biodiesel and renewable diesel used as fuel (1) In general Subpart D of part IV of subchapter A of chapter 1 is amended by striking section 40A (and by striking the item relating to such section in the table of sections for such subpart). (2) Conforming amendments (A) Section 38(b) is amended by striking paragraph (17). (B) Section 87 is amended— (i) in paragraph (1), by adding and at the end, (ii) by striking paragraph (2), and (iii) by redesignating paragraph (3) as paragraph (2). (C) Section 196(c) is amended by striking paragraph (11). (D) Section 4101(a)(1) is amended by inserting (as in effect on the day before the enactment of the Energy Freedom Act ) after section 40A(d)(1) . (E) Section 4104(a)(1) is amended by striking 34, 40, and 40A, and inserting 34 and 40 . (F) Section 7704(d)(1)(E) is amended by inserting (as in effect on the day before the enactment of the Energy Freedom Act ) after section 40A(d)(1) . (b) Credit for alcohol fuel, biodiesel, and alternative fuel mixtures (1) In general Subchapter B of chapter 65 is amended by striking section 6426 (and by striking the item relating to such section in the table of sections for such subpart). (2) Conforming amendments (A) Section 40(c) is amended by striking , section 6426, . (B) Section 4101(a)(1) is amended by inserting (as in effect on the day before the enactment of the Energy Freedom Act ) after section 6426(b)(4)(A) . (C) Section 4104(a)(2) is amended by striking , 6426, . (D) Section 7704(d)(1)(E) is amended by striking any fuel described in subsection (b), (c), (d), or (e) of section 6426, or any alcohol fuel defined in section 6426(b)(4)(A) and inserting any fuel described in subsection (b), (c), (d), or (e) of section 6426 (as in effect on the day before the enactment of the Energy Freedom Act ), or any alcohol fuel defined in section 6426(b)(4)(A) (as in effect on the day before the enactment of the Energy Freedom Act ) . (E) Section 9503(b)(1) is amended by striking taxes received under sections 4041 and 4081 shall be determined without reduction for credits under section 6426 and . (c) Biodiesel, alternative fuel, or sustainable aviation fuel (1) In general Section 6427 is amended— (A) by striking subsection (e), and (B) in subsection (i), by striking paragraph (3). (2) Conforming amendments (A) Section 40(c), as amended by subsection (b), is amended by striking or section 6427(e) . (B) Section 4104(a)(2), as amended by subsection (b), is amended by striking or 6427(e) . 9. Sustainable aviation fuel credit repealed (a) In general Subpart D of part IV of subchapter A of chapter 1 is amended by striking section 40B (and by striking the item relating to such section in the table of sections for such subpart). (b) Conforming amendment Section 38(b) is amended by striking paragraph (35). (c) Conforming amendments (1) Section 87 , as amended by section 8 of this Act, is amended to read as follows: 87. Alcohol credit Gross income includes the amount of the alcohol fuel credit determined with respect to the taxpayer for the taxable year under section 40(a). . (2) Section 4101(a)(1) is amended by inserting (as in effect on the day before the enactment of the Energy Freedom Act ) after section 40B . (d) Effective date The amendments made by this section shall apply to fuel sold or used after December 31, 2025. 10. Electricity produced from certain renewable resources credit repealed (a) In general Subpart D of part IV of subchapter A of chapter 1 is amended by striking section 45 (and by striking the item relating to such section in the table of sections for such subpart). (b) Conforming amendments (1) Section 38 is amended— (A) in subsection (b), by striking paragraph (8), and (B) in subsection (c)(4)(B), by striking clauses (iv) and (v). (2) Section 45J is amended— (A) in subsection (c)(2)(A)(i), by inserting (as in effect on the day before the date of enactment of the Energy Freedom Act ) after 45(e)(2)(C) , (B) in subsection (c)(2)(B), by inserting (as in effect on the day before the date of enactment of the Energy Freedom Act ) after 45(e)(2)(B) , and (C) in subsection (f), by inserting (as in effect on the day before the date of enactment of the Energy Freedom Act ) after section 45(e) . (3) Section 45K(g)(2) is amended by striking subparagraph (E). (4) Section 55(c)(1) is amended by striking 45(e)(11)(C), . (5) Section 59A(b)(4) is amended— (A) in subparagraph (A), by adding and at the end, (B) by striking subparagraph (B), and (C) by redesignating subparagraph (C) as subparagraph (B). (c) Effective date The amendments made by this section shall apply to electricity produced in taxable years beginning after December 31, 2025. 11. New energy efficient home credit repealed (a) In general Subpart D of part IV of subchapter A of chapter 1 is amended by striking section 45L (and by striking the item relating to such section in the table of sections for such subpart). (b) Conforming amendments (1) Section 38(b) is amended by striking paragraph (23). (2) Section 196(c) is amended by striking paragraph (13). (3) Section 1016(a) is amended by striking paragraph (32). (c) Effective date The amendments made by this section shall apply to homes acquired after December 31, 2025. 12. Carbon oxide sequestration credit repealed (a) In general Subpart D of part IV of subchapter A of chapter 1 is amended by striking section 45Q (and by striking the item relating to such section in the table of sections for such subpart). (b) Conforming amendments (1) Section 38(b) is amended by striking paragraph (29). (2) Section 142(o)(1)(B) is amended by inserting (as in effect on the day before the enactment of the Energy Freedom Act ) after section 45Q(e)(3) . (3) Section 969D(e)(4)(B)(ii)(II)(cc) of the Energy Policy Act of 2005 (42 U.S.C. 16298d(e)(4)(B)(ii)(II)(cc)) is amended by inserting (as in effect on the day before the date of enactment of the Energy Freedom Act ) after section 45Q(f)(5) . (c) Effective date The amendments made by this section shall apply to facilities or equipment placed in service after December 31, 2025. 13. Zero-emission nuclear power production credit repealed (a) In general Subpart D of part IV of subchapter A of chapter 1 is amended by striking section 45U (and by striking the item relating to such section in the table of sections for such subpart). (b) Conforming amendments Section 38(b) is amended by striking paragraph (34). (c) Effective date The amendments made by this section shall apply to electricity produced and sold after December 31, 2025, in taxable years beginning after such date. 14. Clean hydrogen production credit repealed (a) Credit for production of clean hydrogen repealed (1) In general Subpart D of part IV of subchapter A of chapter 1 is amended by striking section 45V (and by striking the item relating to such section in the table of sections for such subpart). (2) Conforming amendment Section 38(b) is amended by striking paragraph (36). (3) Effective date The amendments made by this section shall apply to hydrogen produced after December 31, 2025. 15. Qualified commercial clean vehicles credit repealed (a) In general Subpart D of part IV of subchapter A of chapter 1 is amended by striking section 45W (and by striking the item relating to such section in the table of sections for such subpart). (b) Conforming amendments (1) Section 38(b) is amended by striking paragraph (37). (2) Section 6213(g)(2) is amended by striking subparagraph (V). (c) Effective date The amendments made by this section shall apply to vehicles acquired after December 31, 2025. 16. Advanced manufacturing production credit repealed (a) In general Subpart D of part IV of subchapter A of chapter 1 is amended by striking section 45X (and by striking the item relating to such section in the table of sections for such subpart). (b) Conforming amendment Section 38(b) is amended by striking paragraph (38). (c) Effective date The amendments made by this section shall apply to components produced and sold after December 31, 2025. 17. Clean electricity production credit repealed (a) In general Subpart D of part IV of subchapter A of chapter 1 is amended by striking section 45Y (and by striking the item relating to such section in the table of sections for such subpart). (b) Conforming amendments (1) Section 38(b), as amended by Public Law 117–169 , is amended by striking paragraph (39). (2) Section 168(e)(3)(B)(viii), as added by Public Law 117–169 , is amended by striking any qualified facility (as defined in section 45Y(b)(1)(A)), . (c) Effective date The amendments made by this section shall apply to facilities placed in service after December 31, 2025. 18. Clean fuel production credit repealed (a) In general Subpart D of part IV of subchapter A of chapter 1 is amended by striking section 45Z (and by striking the item relating to such section in the table of sections for such subpart). (b) Conforming amendments (1) Section 38(b), as amended by Public Law 117–169 , is amended by striking paragraph (40). (2) Section 4101(a)(1), as amended by Public Law 117–169 , is amended by striking every person producing a fuel eligible for the clean fuel production credit (pursuant to section 45Z), . (c) Effective date The amendments made by this section shall apply to transportation fuel produced after December 31, 2025. 19. Energy credit repealed (a) In general Subpart E of part IV of subchapter A of chapter 1 is amended by striking section 48 (and by striking the item relating to such section in the table of sections for such subpart). (b) Conforming amendments (1) Section 38(c)(4)(B) is amended by striking clause (x). (2) Section 45K(b)(3)(A)(i)(III) is amended by inserting (as in effect on the day before the date of enactment of the Energy Freedom Act ) after section 48(a)(4)(C) . (3) Section 46 is amended by striking paragraph (2). (4) Section 48A(b)(2) is amended by inserting as in effect on the day before the enactment of the Energy Freedom Act and before without regard . (5) Section 48B(b)(2) is amended by inserting as in effect on the day before the enactment of the Energy Freedom Act and before without regard . (6) Section 50 is amended— (A) in subsection (a)(2)(E), by striking 48(b) , and (B) in subsection (d)(2), by striking At the election and all that follows through the period. (7) Section 59A(b)(4) is amended— (A) in subparagraph (A), by adding and at the end, (B) in subparagraph (B), by striking , and and inserting a period at the end, and (C) by striking subparagraph (C). (8) Section 168(e)(3)(B)(vi)(I) is amended by inserting (as in effect on the day before the enactment of the Energy Freedom Act ) after section 48(a)(3) . (9) Section 7701(e) is amended— (A) in paragraph (3)— (i) in subparagraph (A)(i)— (I) in subclause (II), by adding or at the end, (II) in subclause (III), by striking or and inserting and , and (III) by striking subclause (IV), and (ii) by striking subparagraph (F), and (B) by striking water treatment works facility, or storage facility and inserting or water treatment works facility . (c) Effective date The amendments made by this section shall apply to property placed in service in taxable years beginning after December 31, 2025. 20. Qualifying advanced energy project credit repealed (a) In general Subpart E of part IV of subchapter A of chapter 1 is amended by striking section 48C (and by striking the item relating to such section in the table of sections for such subpart). (b) Conforming amendments (1) Section 46 is amended by striking paragraph (5). (2) Section 49(a)(1)(C) is amended by striking clause (v). (3) Section 50(a)(2)(E) is amended by striking 48C(b)(2), . (c) Effective date The amendments made by this section shall take effect on January 1, 2026. 21. Clean electricity investment credit repealed (a) In general Subpart E of part IV of subchapter A of chapter 1 is amended by striking section 48E (and by striking the item relating to such section in the table of sections for such subpart). (b) Conforming amendments (1) Section 46, as amended by Public Law 117–169 and section 20 of this Act, is amended— (A) in paragraph (4), by adding and at the end, (B) in paragraph (6), by striking , and and inserting a period, and (C) by striking paragraph (7). (2) Section 49(a)(1)(C), as amended by Public Law 117–169 , is amended— (A) by adding and at the end of clause (iv), (B) by striking the comma at the end of clause (vi) and inserting a period, and (C) by striking clauses (vii) and (viii). (3) Section 50(a)(2)(E), as amended by Public Law 117–169 , is amended by striking 48D(b)(5), or 48E(e) and inserting or 48D(b)(5) . (4) Section 50(c)(3), as amended by Public Law 117–169 , is amended by striking or clean electricity investment credit . (5) Section 168(e)(3)(B), as amended by Public Law 117–169 and section 17 of this Act, is amended by striking clause (viii). (c) Effective date The amendments made by this section shall apply to facilities and property placed in service after December 31, 2025. 22. Energy efficient commercial buildings deduction repealed (a) In general Part VI of subchapter B of chapter 1 is amended by striking section 179D (and by striking the item relating to such section in the table of sections for such part). (b) Conforming amendments (1) Section 263(a)(1) is amended by striking subparagraph (J). (2) Section 312(k)(3)(B) is amended to read as follows: (B) Treatment of amounts deductible under section 179, 179B, 179C, or 179E For purposes of computing the earnings and profits of a corporation, any amount deductible under section 179, 179B, 179C, or 179E shall be allowed as a deduction ratably over the period of 5 taxable years (beginning with the taxable year for which such amount is deductible under section 179, 179B, 179C, or 179E, as the case may be). . (3) Section 1016(a) is amended by striking paragraph (31). (4) Section 1245(a) is amended— (A) in paragraph (2)(C), by striking 179D, , and (B) in paragraph (3)(C), by striking 179D, . (c) Effective date The amendments made by this section shall apply to property placed in service after December 31, 2025. 23. Repeal on tax on petroleum (a) In general Chapter 38 is amended by striking subchapter A (and by striking the item relating to such subchapter in the table of subchapters for such chapter). (b) Conforming amendments (1) Section 4671(c) is amended to read as follows: (c) Exemptions for substances taxed under section 4661 No tax shall be imposed by this section on the sale or use of any substance if tax is imposed on such sale or use under section 4661. . (2) Section 9507(b) is amended— (A) in paragraph (1), by striking 4611, 4661, and inserting 4661 , and (B) by striking the flush matter at the end. (3) Section 9509(b) is amended by striking paragraph (1). (4) Section 198(d)(1)(C) is amended by inserting (as in effect on the day before the enactment of the Energy Freedom Act ) after section 4612(a)(3) . (5) Section 4132(a)(3) is amended by inserting (as in effect on the day before the enactment of the Energy Freedom Act ) after section 4612(a)(4) . (6) Section 4662(a)(2) is amended by inserting (as in effect on the day before the enactment of the Energy Freedom Act ) after section 4612(a)(4) . (7) Section 4682(e)(2) is amended by inserting (as in effect on the day before the enactment of the Energy Freedom Act ) after section 4612(a)(4) . (8) Section 5000D(e)(2) is amended by inserting (as in effect on the day before the enactment of the Energy Freedom Act ) after section 4612(a)(4) . (c) Effective date The amendments made by this section shall take effect on January 1, 2026. 24. Repeal of sections relating to elective payment for energy property and electricity produced from certain renewable resources; transfer of credits (a) In general Subchapter B of chapter 65 is amended by striking sections 6417 and 6418 (and by striking the items relating to such sections in the table of sections for such subchapter). (b) Conforming amendments (1) Section 39(a) is amended by striking paragraph (4). (2) Section 50(d) is amended by striking In the case of a real estate investment trust making an election under section 6418, paragraphs (1)(B) and (2)(B) of the section 46(e) referred to in paragraph (1) of this subsection shall not apply to any investment credit property of such real estate investment trust to which such election applies . (3) Section 56A(c)(9) is amended by striking or 6417 . (4) Section 13801 of Public Law 117–169 is amended by striking subsection (f). (c) Effective date The amendments made by this section shall apply to taxable years beginning after December 31, 2025.