On October 29, 2025, Democratic members of the House Ways and Means Committee introduced H.R. 5862, the American Energy Independence and Affordability Act (the Bill). The legislation, introduced by Rep. Mike Thompson (D-Calif.), would restore clean energy tax credits from the Inflation Reduction Act (IRA) that were cut by the One Big Beautiful Bill Act (OBBBA), passed earlier this year.
What the Bill Does
The Bill unwinds many OBBBA changes, which are detailed in the article Understanding the OBBBA’s FEOC Framework. Specifically, the Bill would undo the accelerated termination dates for the following tax credits and deductions:
Clean Energy/Hydrogen Tax Credits
- Clean energy production tax credit
- Clean energy investment credit
- Clean energy advanced manufacturing production credit
- Clean hydrogen production credit
Building Tax Credits/Deductions
- Residential clean energy credit
- New energy efficient home credit
- Energy-efficient commercial buildings deduction
Vehicle Tax Credits
- Previously owned clean vehicle credit
- Alternative fuel vehicle refueling property credit
- New clean vehicle credit
- Qualified commercial clean vehicle credit
The Bill would also amend the current 2032 expiration date of the production tax credit to either 2032 or the year when the Treasury determines annual greenhouse emissions from U.S. electricity production are equal to or less than 25% of annual emissions for 2022, whichever comes later.
What the Bill Does Not Do
The Bill does not change the OBBBA’s restrictions on clean energy tax credits for foreign entities of concern (FEOCs). As discussed in this FAQ regarding OBBBA renewable energy provisions, the OBBBA prohibits foreign or foreign-influenced entities, as well as projects receiving material assistance from designated prohibited foreign entities, from claiming clean energy tax credits. However, a spokesperson for Rep. Thompson indicated the House Ways and Means Committee is open to ideas from industry groups regarding this issue.
Looking Forward
The Bill is co-sponsored by 114 Democratic members of Congress. While the Bill currently lacks Republican support, Democratic representatives are hopeful. Nevertheless, its introduction represents a step toward restoring clean energy incentives.