S. 1721

119 S1721 IS: Energy Freedom Act
 U.S. Senate
 2025-05-13
 text/xml
 EN
 Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain.
 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  Energy efficient home improvement credit repealed.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  Residential clean energy credit repealed.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  Previously-owned clean vehicles credit repealed.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  Alternative fuel vehicle refueling property credit repealed.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  Clean vehicle credit repealed.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  Sustainable aviation fuel credit repealed.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  repealed.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  New energy efficient home credit repealed.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  Carbon oxide sequestration credit repealed.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  Zero-emission nuclear power production credit repealed.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  Clean hydrogen production credit repealed.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  Qualified commercial clean vehicles credit repealed.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  Advanced manufacturing production credit repealed.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  Clean electricity production credit repealed.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  Clean fuel production credit repealed.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  Energy credit repealed.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  Qualifying advanced energy project credit repealed.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  Clean electricity investment credit repealed.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  Energy efficient commercial buildings deduction repealed.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.