New solar and wind tax comes as a surprise to Republican senators

WASHINGTON — Tucked inside Republicans’ massive domestic policy bill is an excise tax for wind and solar projects, a provision that came as a surprise not just to the renewable energy industry, but to numerous senators who are crafting the legislation.

In an unusual twist, Republican senators insist they don’t know how or why the tax was inserted into the bill they’re rushing to pass. No senator is taking credit or defending it. And at least one wants it removed.

Sen. Lindsey Graham, R-S.C., the Budget Committee chairman who released the 940-page bill, said he doesn’t know where that provision came from.

“I don’t know,” Graham told NBC News on Monday evening. “It’s a secret, I guess. I don’t know where it came from.”

Sen. Lisa Murkowski, R-Alaska, was baffled by the provision, saying the excise tax “just came about” like it was “airdropped” into the bill ahead of the Saturday vote to proceed.

“It wasn’t part of any consideration,” she said. “It’s like, surprise! It’s Saturday night. And we looked at it like, where did this come from?”

“My view of it is — it’s just entirely punitive to the wind and solar industry,” Murkowski said, adding that the Republican-controlled Senate is “looking at different options to” to deal with it.

The provision would tax wind and solar projects if a certain share of their components come from China. It is ambiguously worded and empowers the Trump administration to iron out the rule.

Sen. Cynthia Lummis, R-Wyo., said she’s “OK with that” when asked about the details of the provision. But she, too, was in the dark about who inserted it into the legislation.

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

Tesla CEO and former Trump adviser Elon Musk torched the legislation, saying it would “destroy millions of jobs in America.”

“Utterly insane and destructive,” Musk said of the bill. “It gives handouts to industries of the past while severely damaging industries of the future.” He added, “A massive strategic error is being made right now to damage solar/battery that will leave America extremely vulnerable in the future.”

Spokespeople for the Republican chairs of the Finance Committee (Sen. Mike Crapo of Idaho), the Energy and Natural Resources Committee (Sen. Mike Lee of Utah), and the Environment and Public Works Committee (Sen. Shelley Moore Capito of West Virginia) didn’t respond to requests for comment when asked if those senators championed the provision.

The White House and Republican leaders tout the bill as fulfilling President Donald Trump’s promise to boost energy production in the U.S., including fossil fuels. The president also vowed to unravel clean energy incentives passed by Democrats in the Biden administration.

Democrats have blasted the excise tax — among other energy policies in the GOP bill — as an attempt to reward fossil fuel companies while further discouraging clean energy production.

Industry groups also tore into the new excise tax.

“With no warning, the Senate has proposed new language that would increase taxes on domestic energy production,” said Jason Grumet, the CEO of the American Clean Power Association.

“In what can only be described as ‘midnight dumping,’ the Senate has proposed a punitive tax hike targeting the fastest-growing sectors of our energy industry,” he said. “It is astounding that the Senate would intentionally raise prices on consumers rather than encouraging economic growth and addressing the affordability crisis facing American households.”

Neil Bradley, executive vice president at the Chamber of Commerce, praised the overall bill but criticized that provision, writing on X that “taxing energy production is never good policy, whether oil & gas or, in this case, renewables.”

“Electricity demand is set to see enormous growth & this tax will increase prices,” he said. “It should be removed.”