On July 3, 2025, Congress passed the reconciliation bill which, among many devastating cuts across the federal budget, seriously damages existing clean energy and clean technology tax credits, including key provisions from the landmark Inflation Reduction Act. These changes unequivocally harm Minnesota’s economy, will increase the cost of living for Minnesotans, will cost jobs, and significantly impact Minnesota’s burgeoning clean energy sector.
Some of the changes to clean energy and climate tax credits include:
- Striking tax credits for new energy efficient commercial buildings and homes (179D, 45L)
- Ending credits for clean hydrogen at the end of 2027 (45V)
- Phasing out the 30+ year old wind and solar tax credits (45Y)
- Terminating credits for energy-efficient home improvements (25C)
- Ending tax credits for purchasing new and used EVs in September 2025 (30D, 25E)
“Congress has turned its back on Minnesotan families with this extreme and callous legislation that promises higher energy bills, fewer jobs, and stifled innovation,” said Margaret Cherne-Hendrick, Chief Executive Officer of Fresh Energy. “Minnesota has a strong legacy of leadership in advancing clean energy solutions to tackle the existential threat of climate change in ways that grow our economy and create family-sustaining jobs. Fresh Energy is committed to ensuring this legacy continues across all sectors of Minnesota’s economy.”
