The “Big and American Act” abolishes consumption tax on wind energy and solar energy projects, and US stocks soared in response

The Zhitong Finance App learned that after several days of intense negotiations, the US Senate passed the latest version of US President Trump's tax and expenditure bill, and the Republican Party abolished consumption taxes on wind and solar energy projects at the last minute. Affected by the news, US solar stocks surged on Tuesday.

By the close of the US stock market on Tuesday, Shoals Technologies (SHLS.US) had risen nearly 24%, Array Technologies (ARRY.US) had risen nearly 13%, Sunrun (RUN.US) had risen nearly 11%, Fluence Energy (FLNC.US) had risen more than 9%, SolarEdge Technologies (SEDG.US) had risen more than 7%, and Nextracker (NXT.US) had risen nearly 6%.

Some US manufacturers support the proposed tax, saying the US needs to get rid of its dependence on China's clean energy supply chain. But the policy has raised concerns among renewable energy developers, who say it could increase the cost of solar and wind farms, as these farms still rely on some foreign components and a Chinese-dominated supply chain.

The bill still stipulates that tax credits for solar and wind energy will be phased out starting in 2026, and that solar or wind energy projects must be put into operation before the end of 2027 to receive tax credits; the nuclear power tax credit will continue until 2036, and the hydrogen tax credit will be abolished in 2028.

Abigail Ross Hopper, president of the American Solar Energy Industry Association, said in a statement: “Despite improvements, this bill undermines the foundations of America's manufacturing recovery and global energy leadership. If this bill becomes law, households will face higher electricity bills, factories will shut down, Americans will lose their jobs, and our grid will become more vulnerable.”

According to information, the “Big and Beautiful Act” promoted by Trump passed by a narrow margin of 51-50 in the Senate on Tuesday, but customs clearance in the House of Representatives still needs to be overcome. Given the concerns expressed by some Republican lawmakers about the bill's impact on the fiscal deficit, this task will be very difficult. According to estimates by the non-partisan Congressional Budget Office (CBO), the bill would increase the US federal deficit by at least $3 trillion over the next ten years.