Vestas Wind systems A/S and Orsted A/S sank together on the first day of trade after the latest version of President Donald Trump’s spending package proposed a more aggressive exit of tax incentives for US wind and solar projects.
The newly published version of the Senate’s tax and expenditure package, Unveiled late FridayRequires that wind and solar projects are fully functional by the end of 2027 to qualify for Clean -Energy incentives. This represents a significant tightening of the previous proposal, in which only projects had to start building by the end of 2025.
If it becomes a law, the change would significantly increase the use for the industry and put pressure on the developers to speed up schedules or to lose the loss of federal support. The legislation also contains a new tax for wind and solar projects that do not meet strict restrictions against the use of Chinese materials.
The Vestas shares fell 6.5%. Orsted A/S fell by up to 4.2%in early trade in Copenhagen, but later some losses. Edp Renovaveis SA, the unity for renewable energies of the Portuguese supply company EDP SA, also slipped by more than 4%.
According to Citigroup Inc., Martin Wilkie, the latest text from the Senate’s draft law looks “incremental negative”.
In the United States, Nextera Energy Inc. is 3.1% in the Premarket trade, Sunrun Inc. is 4% low and Energy Inc. is 4.8% lower.
This story was originally on Fortune.com
