The United States House of Representatives has passed the Senate’s version of the budget reconciliation bill without any changes by a vote of 218 to 214. President Trump is expected to sign the bill into law on Friday.

The Senate had removed the excise tax on wind and solar projects. The bill’s previous version included a tax of 50% on solar and 30% on wind projects commissioned after December 31, 2027, if they were constructed after the date of enactment and received material assistance from prohibited foreign entities.

Material assistance restrictions would still apply for projects beginning construction after December 31, 2025.

The final Senate version includes a key revision, wherein solar and wind utility-scale projects breaking ground within 12 months of the bill’s passage will still qualify for the full Section 48E Investment Tax Credit (ITC) and the Section 45Y Production Tax Credit (PTC).

However, projects that begin construction after the 12-month grace period must be placed in service by 2027 to remain eligible.

The bill also proposes phasing out the manufacturing production credit for critical minerals. In 2031, the credit for critical minerals would be limited to 75%. It would drop to 50% in 2032, 25% in 2033, and end entirely in 2034. The credit for wind components would phase out earlier, ending for items produced and sold after December 31, 2027.

The bill passed in the Senate by a vote of 51 to 50, with Vice President Vance casting the tie-breaking vote.

The clean energy industry voiced disappointment with the passage of the bill.

Abigail Ross Hopper, president and CEO of the Solar Energy Industries Association (SEIA), said: “The bill being sent to the President’s desk today is a significant step backwards for our nation’s energy economy at a time when we can least afford it. In the face of rising energy costs, global instability, and growing demand for power, Congress has turned its back on the very industries that are adding the majority of the new electricity generating capacity to the grid.

“Regardless of what happens in Washington in the coming months and years, markets will continue to drive outcomes.”

Trade association, the Coalition for Community Solar Access (CCSA), called the House’s final passage of the reconciliation bill an “irrational and punitive choice.” It said, “By voting for this bill, Congress chose to raise energy prices, put at risk thousands of energy projects already under development, destabilize investor confidence in energy markets, and put hundreds of thousands of American jobs at risk.

Donald Trump has issued a raft of executive orders seeking to reverse his predecessor’s climate and energy agenda soon after assuming office as U.S. president. One of his first orders directed federal agencies to immediately pause the disbursement of funds through the IRA, which proposed spending millions of dollars to promote clean energy.