Solar stocks sink as House approves GOP tax bill ending incentives earlier

Published 22/05/2025, 12:30
© Reuters.

Investing.com - Shares in solar names fell in premarket U.S. trading on Thursday after U.S. House Republicans voted on a revamped version of a tax and spending bill that would cut into incentives for clean electricity production.

These tax credits would have been phased out over a longer period of time in an initial proposal of the legislation, with some being allowed to remain until early in the next decade. But the fresh version would see these incentives come to an end at an earlier time.

Hardline Republican lawmakers had pushed for the speedier timeline as part of a deal for their support of the wider budget bill. GOP officials have argued that the tax credits mostly benefit already-mature solar and wind industries, rather than provide support to other clean energy sources.

Among the changes in the updated version, projects would be required to start construction within 60 days of the tax bill’s enforcement in order to qualify for the tax credits.

Republicans in the House of Representatives narrowly voted to pass President Donald Trump’s so-called "big, beautiful" budget bill on Thursday morning. The measure now goes to the GOP-controlled Senate, where it will also need to be approved before being sent to Trump’s desk for signing.

Prior to the start of trading on Wall Street, shares in Sunrun (NASDAQ:RUN), Canadian Solar (NASDAQ:CSIQ), Enphase Energy (NASDAQ:ENPH), Array Technologies (NASDAQ:ARRY), First Solar (NASDAQ:FSLR), and SolarEdge (NASDAQ:SEDG) all fell.

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