CRA resolution on energy tax incentives voted down

27 March 2026

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On 25 March 2026, the US Senate voted 47-53 to reject a procedural motion on a resolution (S.J. Res. 107), introduced in February under the Congressional Review Act (CRA) by Senate taxwriter Catherine Cortez Masto (D-Nev.), Senate Minority Leader Chuck Schumer (D-N.Y.), and Senate Finance Committee Ranking Member Ron Wyden (D-Ore.), after it failed to secure the simple majority required for passage. The resolution would undo IRS Notice 2025-42, which provides new guidance on the beginning of construction (BOC) rules for purposes of determining if solar and wind facilities are subject to the credit termination provisions applicable to Internal Revenue Code sections 45Y and 48E.

Sections 70512 and 70513 of the law commonly known as the One Big Beautiful Bill Act (OBBBA, P.L. 119-21) added a credit termination provision to both the section 45Y production tax credit (PTC) and the section 48E investment tax credit (ITC). Under this provision, the section 45Y PTC and the section 48E ITC terminate for wind or solar qualified facilities that begin construction after 4 July 2026 and are not placed in service on or before 31 December 2027. This termination provision does not apply to wind or solar qualified facilities that begin construction on or before 4 July 2026.

For more extensive coverage of the OBBBA, see Deloitte Tax LLP’s A closer look: Inside the new tax law.

The CRA process allows Congress to review and disapprove certain rules issued by federal agencies. A disapproval resolution requires only a simple majority for passage in the Senate rather than the three-fifths majority—or 60 votes—typically needed to overcome procedural hurdles in that chamber. If a disapproval resolution reaches the White House and gains the president’s signature, the underlying rule is treated as though it had never taken effect and cannot be reissued in a substantially similar form unless specifically authorized in a subsequent law.

What they said…

Sen. Cortez Masto said on the Senate floor that—in the context of the CRA to undo Notice 2025-42—the administration seems intent on making it more difficult for working families to afford their energy bills. Citing Notice 2025-42, she argued that “it makes it more expensive to build America’s clean energy future, makes it harder for the United States to meet the increased demand for electricity, and will lead to higher energy prices for working families.” She added that the notice revokes the 5% safe harbor for what qualifies as beginning of construction for solar and wind, calling it a “harmful new rule” that “will potentially eliminate thousands of jobs.”

Senate Finance Committee Chairman Mike Crapo (R-Idaho) spoke on the floor in opposition to the resolution, saying the notice is intended to “prevent the abuse” of certain energy projects, and argued that the effect of overturning the notice would be “exactly the opposite” of what Democrats claim on affordability. “Overturning this notice would create more uncertainty and unpredictability for current projects and discourage focus on more reliable and affordable energy sources,” Crapo said.

Content provided by Deloitte United States.