Surprise Wind and Solar Tax in GOP Megabill Sparks Confusion Among Republican Senators

A new excise tax on wind and solar energy projects, quietly included in a sweeping Republican domestic policy bill, has caught both lawmakers and the renewable energy industry off guard.

Several GOP senators — including those overseeing the legislation — said they were unaware of how the provision was added, as the Senate moves quickly to advance the nearly 1,000-page bill.

Senator Lindsey Graham, R-S.C., chairman of the Budget Committee and one of the key figures behind the bill, expressed confusion over the tax’s origin.

“I don’t know where it came from,” Graham told NBC News, calling it a mystery provision that was not discussed or debated in committee meetings.

Senator Lisa Murkowski, R-Alaska, shared a similar sentiment, describing the tax as having been “airdropped” into the legislation over the weekend.

The provision would apply a tax to wind and solar energy projects that use certain components sourced from China or other adversarial nations. While the language remains vague, it appears to grant broad discretion to the Trump administration to determine how the tax would be implemented.

Senator Cynthia Lummis, R-Wyo., said she was “OK” with the idea behind the tax but also admitted she didn’t know who authored the measure.

“You can add me to the group that doesn’t know the answer,” she said.

The bill is part of a larger legislative effort championed by former President Donald Trump and GOP leaders to reshape US tax policy, boost domestic fossil fuel production, and scale back clean energy subsidies enacted under President Biden’s 2022 climate law. The legislation proposes major tax cuts, safety net reductions, and increased military spending.

Industry leaders and clean energy advocates reacted strongly to the sudden inclusion of the new tax. Jason Grumet, CEO of the American Clean Power Association, labeled the move as “midnight dumping” and warned that it would penalize one of the country’s fastest-growing energy sectors.

“It is astounding that the Senate would intentionally raise prices on consumers,” he said.

Tesla CEO Elon Musk also criticized the legislation, calling it “utterly insane and destructive.” Musk argued the bill would hurt solar and battery industries, leaving the US “extremely vulnerable in the future.”

Environmental groups say the bill could drastically limit renewable energy development by eliminating key tax credits and imposing new compliance requirements. The legislation accelerates the expiration of renewable tax credits to 2027 and restricts access based on supply chain origin, criteria that clean energy developers say are difficult to meet on short notice.

Democratic lawmakers have condemned the measure. Senator Ron Wyden, D-Ore., the top Democrat on the Senate Finance Committee, said the provision went beyond phasing out clean energy support and amounted to “an outright massacre” of renewable energy policy.

Even business groups with traditionally conservative leanings expressed concern. Neil Bradley, executive vice president of the US Chamber of Commerce, said taxing any form of energy production — including renewables — is poor policy and could lead to higher electricity prices.

Despite internal confusion and growing backlash, Republican leadership continues to promote the bill as a win for traditional energy and economic relief. Senator Mike Crapo, R-Idaho, chair of the Senate Finance Committee, said the bill “slashes Biden’s Green New Deal spending” and restores “affordable, reliable” energy.

Some moderate Republicans, including Senator John Curtis, R-Utah, have indicated they may push to remove or revise the excise tax before final passage. However, it remains unclear whether those efforts will succeed.

With input from NBC News and the Associated Press.