Jack Stevens: Tribes May Get the Last Laugh Regarding the GOP's Excise Tax on Clean Energy

To kill clean energy projects root and branch, the Senate GOP is imposing an excise tax on certain wind and solar projects placed into service after 2027, whose construction began after June 16 of this year. To avoid the tax, developers would have to show that they are not using components from specified countries, including China. If it stands, the tax is predicted to add 10% to 20% to construction costs.

The good news is that because of sovereign immunity, the federal government cannot impose this tax on federally recognized tribal nations. So, this could make tribal trust land a preferred location for wind and solar projects.

Postscript: The Senate GOP removed the excise tax from the version of the budget bill it sent to the House on July 1, 2025.