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Kiggans urges reforms to clean energy tax rules in reconciliation bill

June 7, 2025
in VA State News
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By Shirleen Guerra | The Center Square

(The Center Square) – A Virginia congresswoman is calling for changes to a federal reconciliation bill she says could delay energy projects, drive up costs and weaken U.S. competitiveness.

Rep. Jen Kiggans, R-Va., joined Rep. Brian Fitzpatrick, R-Pa., and 11 other lawmakers in a letter urging the Senate to revise key provisions in the energy section of H.R. 1, known as the ‘One Big Beautiful Bill’ Act. The group raised concerns about how the current bill treats clean energy tax credits, particularly around expiration dates, ownership restrictions and foreign entity rules.

In the letter, the lawmakers warned that unless the Senate adopts reforms, the bill could jeopardize billions in planned investments. They pointed to more than $14 billion in energy projects that have already been canceled or delayed since January, including $4.5 billion in April alone.

Kiggans said the bill in its current form leaves “significant room for improvement” and called for a clean energy policy that prioritizes American families, workers and manufacturers.

“That means reducing our reliance on foreign adversaries, protecting taxpayers, and giving U.S. businesses the certainty they need to keep investing in the projects that power our economy,” she said in the release.

The letter comes as Virginia developers face growing delays in grid access and interconnection studies, a required step before large-scale energy projects can connect to the power system. These studies help grid operators evaluate whether new projects can safely operate without affecting nearby homes or businesses.

As energy demand continues to rise, particularly in Northern Virginia, the volume of proposed projects has increased, extending review timelines. Lawmakers have pointed to this trend as another reason to clarify federal tax credit rules and provide long-term certainty for energy investments.

The letter specifically calls for changes to three provisions:

•.Foreign Entity of Concern rules, which restrict involvement from Chinese-linked companies and others deemed national security risks.

• Transferability rules, which affect how companies can sell or transfer energy tax credits.

• The “placed in service” requirement, which the lawmakers say creates timing uncertainty for developers.

The group recommends replacing the “placed in service” rule with a “commence construction” standard, which they argue would provide more flexibility for delayed or large-scale projects.

 

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