“The bill will raise energy costs and make it harder to keep the lights on,” said Steven Nadel, executive director of the American Council for an Energy-Efficient Economy. “No one asked Congress to make their energy bills even higher. Taking away incentives for energy-saving improvements would raise monthly bills for families and businesses. It will only exacerbate the growing strain on the electric grid. And the bill goes out of its way to encourage automakers to produce inefficient cars that are costly to fuel.”

The bill would eliminate tax credits supporting energy efficiency, including:

• The Energy Efficient Home Improvement (25C) credit, which helps homeowners make improvements such as installing insulation or highly efficient heating and cooling systems. Millions of households have used the credit, which ACEEE estimates helps save an average of $130 a year. The bill would terminate the credit after 2025.
• The New Energy Efficient Home (45L) credit, which incentivizes builders to construct energy-efficient new houses and apartments. ACEEE estimates that the credit will help build more than three million qualifying homes, saving homebuyers an average of $450 in energy costs annually. The bill would terminate the credit after June 2026.
• The Energy Efficient Commercial Buildings Deduction (179D), which incentivizes owners of commercial and large multifamily buildings to make energy efficiency upgrades and provides incentives for the construction of efficient new ones. The bill would terminate the credit after June 2026.
• The Commercial Clean Vehicle (45W) credit, which helps businesses purchase electric trucks and cars, spurring the commercialization of innovative, clean, efficient electric drivetrains in trucks and other large vehicles, and lowers their total operating costs. The bill would terminate the credit after September 2025.

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https://www.aceee.org/press-release/2025/07/congresss-megabill-would-raise-energy-costs-strain-electric-grid