Musk, Tesla Object to GOP Megabill’s Repeal of Clean Energy Tax Credits

WASHINGTON—Elon Musk and Tesla have criticized the House-passed reconciliation bill over its inclusion of plans to end tax credits for clean energy production.

On May 28, hours after announcing that he would leave the Trump administration as de facto head of the Department of Government Efficiency (DOGE) as the end of his tenure is approaching, the Tesla CEO reposted a note by the company on X urging the Senate to reconsider repeals of clean energy tax credits enacted by the 2022 Inflation Reduction Act during President Joe Biden’s term.

“Abruptly ending the energy tax credits would threaten America’s energy independence and the reliability of our grid,” wrote Tesla Energy, the company’s solar and battery arm.

The House-passed One Big Beautiful Bill Act would eliminate the Inflation Reduction Act residential solar tax credit at the end of the year. It would also end clean electricity investment tax credits for wind and solar in 2029 and require those projects to begin construction within 60 days after the law is passed.

Tesla urged the Senate to enact “a sensible wind-down” of the residential solar and clean electricity investment tax credits.

“This will ensure continued speedy deployment of over 60 [gigawatts of] capacity per year to support AI and domestic manufacturing growth,” it wrote.

Musk also responded to an X user who posted that cutting solar energy tax credits was unjust.

“There is no change to tax incentives for oil & gas, just EV/solar,” Musk wrote.

Some Senate Republicans have objected to repeals and phase-downs of the clean energy tax credits.

“A wholesale repeal, or the termination of certain individual credits, would create uncertainty, jeopardizing … job creation in the energy sector and across our broader economy,” four senators wrote in an April 9 letter to Senate Majority Leader John Thune (R-S.D.). The letter was signed by Republican Sens. Lisa Murkowski of Alaska, John Curtis of Utah, Thom Tillis of North Carolina, and Jerry Moran of Kansas.

Conservative Republicans, meanwhile, have argued for a complete repeal of the Inflation Reduction Act tax credits, saying it could lead to billions in savings. Subsidies under the 2022 law “prop up unreliable energy sources while displacing dependable, proven energy like coal and natural gas,” 33 House Republicans said in a May letter.

Earlier this week, Musk told CBS News he was disappointed in the reconciliation bill, saying it would add to the deficit and undermine DOGE’s efforts to cut public spending.

President Donald Trump has said he is “not happy about certain aspects of [the bill], but I’m thrilled by other aspects of it.” House Speaker Mike Johnson (R-La.) said spending cuts recommended by DOGE can’t be included in the reconciliation process, but Congress will implement the cuts when the White House sends its rescissions request to lawmakers and through the appropriations process in the coming months.

Musk announced on Wednesday that he’s exiting the administration after finishing his 130-day term as a special government employee.