Central ND News

Congresswoman Julie Fedorchak of North Dakota has introduced new legislation, the Ending Intermittent Energy Subsidies Act, aimed at gradually eliminating tax credits for wind and solar energy over the next five years. Backed by fellow Republicans Gary Palmer, Randy Weber, and Craig Goldman, this initiative targets the reduction of "generous tax credits," according to Fedorchak, that currently support these established renewable energy sectors.

“Wind and solar are no longer emerging technologies—they’re mature, market-proven, and widely deployed,” Fedorchak stated. “By continuing to incentivize these intermittent energy sources through generous tax credits, we’re distorting energy markets and sending the absolute wrong signal to investors. As all the grid operators are saying, we need more dispatchable resources."

The bill focuses on removing tax incentives originally enacted under Sections 45Y and 48E of the Inflation Reduction Act, which the Cato Institute estimates might lead to taxpayer expenditures of up to $901 billion over the coming decade. This figure is nearly three times the estimations by the Congressional Budget Office.

The legislation responds to concerns about the disproportionate impact of the existing subsidy structure, which is said to benefit intermittent energy sources like wind and solar. These resources are not available on demand, putting pressure on the reliability of energy grids nationwide through premature retirement of coal, natural gas, and nuclear power plants.

The Ending Intermittent Energy Subsidies Act proposes a phased reduction of tax credits for wind and solar energy by 20% each year over five years. It will maintain incentives for reliable technologies such as nuclear, hydropower, and geothermal energy. The bill also seeks to close certain loopholes by eliminating the transferability of these tax credits to third parties, a practice that reportedly inflates their value and creates market imbalances.

“As energy demand continues to rise across the United States, it’s critical we get the federal government out of the game of picking winners and losers. I fully support Rep. Fedorchak’s Ending Intermittent Energy Subsidies Act, which phases out costly taxpayer-funded subsidies for wind and solar energy,” said Goldman. “This important legislation will curb excessive government spending and help restore balance to our energy markets.”