Kiggans Continues to Fight for Smart Energy Policy in Reconciliation

WASHINGTON, DC – Today, Congresswoman Jen Kiggans (VA-02) and Congressman Brian Fitzpatrick (PA-01) led a bipartisan letter to Senate leadership encouraging commonsense reforms to key provisions in the energy title of H.R. 1, the One Big Beautiful Bill Act.

In the letter, Kiggans, Fitzpatrick, and 11 of their colleagues, raised concerns about several provisions in the bill. These include the abrupt expiration of clean energy tax credits, overly burdensome Foreign Entity of Concern (FEOC) restrictions, and restrictions on credit transferability. The lawmakers warned that these measures could jeopardize energy development, increase costs, and weaken U.S. competitiveness, and urged the Senate to adopt practical refinements that promote fiscal responsibility while supporting business stability and continued investment in American energy.

“While I supported H.R. 1 in its current form, there remains significant room for improvement in preserving the clean energy tax credits. We need smart energy policy that puts American families, workers, and manufacturers first,” said Congresswoman Kiggans. “That means reducing our reliance on foreign adversaries, protecting taxpayers, and giving U.S. businesses the certainty they need to keep investing in the projects that power our economy. I am hopeful that our Senate partners can make these necessary changes as the legislative process moves forward.”

“A strong energy policy is not just a matter of economics—it’s a matter of national strength. Without these key improvements, we risk sidelining American workers, stalling clean energy innovation, and ceding our competitive edge” said Congressman Fitzpatrick. “I urge the Senate to work with us to get this right—to protect taxpayers, support the skilled workforce driving projects in our communities, and ensure energy jobs remain a foundation of American prosperity. Our future must be powered by energy that is clean, reliable, and made right here at home.”

Read the full letter here and below.

Dear Majority Leader Thune and Chairman Crapo,

As Members of the House Republican Conference, we write to express our continued support for common-sense energy policy, and to urge the Senate to substantively and strategically improve clean energy tax credit provisions included in the House-passed reconciliation bill, H.R. 1, the One Big Beautiful Bill Act.

While we were proud to have worked to ensure that the bill did not include a full repeal of the clean energy tax credits, we remain deeply concerned by several provisions, including those which would abruptly terminate several credits just 60 days after enactment for projects that have not yet begun construction, a highly restrictive and onerous FEOC regime, and restrictions to transferability. This approach jeopardizes ongoing development, discourages long-term investment, and could significantly delay or cancel energy infrastructure projects across the country.

Since January, over $14 billion in energy projects have been cancelled or delayed, with $4.5 billion scrapped in April alone. Without a clear signal from Congress encouraging continued investments and offering business certainty as these provisions are phased out, project cancellations will continue to snowball.
We respectfully urge the Senate to adopt the following refinements:

First, the Foreign Entity of Concern (FEOC) provisions are overly prescriptive and risk undermining U.S. competitiveness, particularly against China, by restricting advanced manufacturing and domestic energy production. These provisions should be revised with clear and streamlined requirements that also allow companies additional time to reorganize their supply chains, ensuring a strategic and successful transition. Specifically, the Senate should work with impacted industries to ensure that these requirements are mechanically workable, thoughtfully designed, and offer certainty to critical sectors.

Second, the House-passed bill includes a phase out schedule for credits that would cause significant disruption to projects under development and stop investments needed to win the global energy race. To mitigate this issue, the current “placed in service” standard should be replaced with a “commence construction” requirement to support the energy development needed to meet growing power demand and protect thousands of high-quality American jobs in communities across the country. Due to ongoing permitting delays and factors often outside of their control, businesses rarely can pinpoint exactly when their projects will be placed in service. The “commence construction” definition included in H.R. 3291, the Certainty for Our Energy Future Act, aims to give businesses flexibility when determining eligibility for the tax credits, providing the investment clarity and lead time required for energy projects to succeed.

Finally, the transferability of energy tax credits should remain available throughout the lifetime of the credit. Transferability ensures affordable electricity for American families and provides certainty for developers, enabling projects in nuclear, manufacturing, biofuels, and critical minerals to move forward. Utilizing transferability allows small and medium energy developers to harness private sector investment capital much more effectively, enabling companies across the economy to invest in a broad spectrum of generation technologies and domestic manufacturing facilities.

Our position has always been that the energy tax code should be modernized in a way that promotes fiscal responsibility and business certainty. Fully realizing that balance requires improvements to the House-passed version of H.R. 1, the One Big Beautiful Bill Act. We believe the Senate now has a critical opportunity to restore common sense and deliver a truly pro-energy growth final bill that protects taxpayers while also unleashing the potential of U.S. energy producers, manufacturers, and workers.

We appreciate your leadership and respectfully request your consideration of these necessary improvements to ensure America’s energy future remains competitive, reliable, and secure.