Solar stocks got wrecked Tuesday after Senate Republicans dropped their version of Trump’s massive tax bill, and it delivered a direct blow to renewable energy. Shares of Enphase Energy crashed over 17% before the market opened. First Solar dropped 12%. Sunrun tanked by more than 27%, and SolarEdge Technologies fell 22%. The sudden selloff came after investors saw what was buried in the bill — a full phaseout of solar and wind tax credits by 2028. That’s the same support system that’s been keeping solar firms alive post-Inflation Reduction Act. The legislation preserves incentives for nuclear, hydropower, and geothermal energy, but axes the support for solar. These clean energy credits were a central part of Joe Biden’s climate plan. Now they’re on the chopping block. The cuts come straight from the Senate version of Trump’s spending plan, which Republicans want passed before July 4. The market didn’t wait. It dumped every major solar stock the minute this version hit the floor. Republicans rush the bill, Senate clashes with House over SALT Ed Mills, a policy analyst at Raymond James, said in a note that “the Senate proposal still represents a material negative for renewable energy investment,” even though it looks better than the earlier House version. He added, “Wind and solar eligibility continue to see pressure in the Senate-passed version.” The GOP’s plan is to pass this before Independence Day, but Mills flagged that “pending Byrd Rule decisions and potential amendments” could slow them down. If Republicans lose even a few votes out of their 53-47 majority, they’ll be forced to start making concessions. The bill lifts the debt ceiling from $4 trillion to $5 trillion. But buried beneath the fiscal talk are deep cuts to Medicaid. The House’s version already paused taxes on providers helping states fund Medicaid and raised payments for their services. The Senate version goes even harder by limiting provider taxes in any state that expanded Medicaid under the ACA. Larry Levitt, executive vice president for health policy at KFF, said the Senate didn’t ease up on anything. “There were expectations that the Senate might moderate the Medicaid cuts passed by the House,” he said, “but if anything they’re doubling down.” That triggered pushback from inside the party. Senator Josh Hawley, a Republican from Missouri, said it could crush rural hospitals. “That’s not good,” Josh said. “It sounds to me like this needs some work.” On the SALT deduction, the Senate also rejected the House’s compromise. The Senate version keeps the federal cap at $10,000 per filer, which blue-state Republicans hate. The House version had bumped the limit to $40,000 for households making under $500,000. That was the deal they needed to get enough GOP votes. Now the Senate just erased it. Senator Kevin Cramer from North Dakota said the $10,000 cap is “just putting down a marker for negotiation,” and said he hopes for a $20,000 middle ground. But Representative Mike Lawler from New York wasn’t having it. He blasted the $10,000 cap on X, calling it “DEAD ON ARRIVAL.” Medicare changes hit seniors, EV credit gets scrapped More hidden changes in the bill hit Medicare. It now requires seniors to prove citizenship or permanent residency to keep their benefits. That’s on top of another provision also included in the House version. It would change cost-sharing rules for people who qualify for both Medicare and Medicaid, known as “dual eligibles.” Kevin called the Medicare changes “low-hanging fruit.” Meanwhile, the clean energy rollback goes even further. The Senate bill removes clean energy funding that Democrats passed in 2022, including the electric vehicle tax credit. It opens the door back up for fossil fuels to dominate energy investments, reversing nearly two years of policy direction. Senator Mike Crapo, chair of the Finance Committee, said in a statement, “I look forward to continued coordination with our colleagues in the House and the Administration to deliver President Trump’s bold economic agenda for the American people as quickly as possible.” The goal is to have the whole package signed by Trump before August. Democrats are preparing to fight the bill on every level. Senator Ron Wyden, a Democrat from Oregon and the ranking member on the Finance Committee, said, “Senate Democrats are going to fight this with everything we’ve got. The House Republican version of this bill was already a class war, but Senate Republicans decided to inflict even more devastation on the lives of working Americans to give even larger handouts to the top.” Cryptopolitan Academy: Want to grow your money in 2025? Learn how to do it with DeFi in our upcoming webclass. Save Your Spot
