Why AES Corporation Plunged Today
Shares of solar and wind-power producer AES Corporation (NYSE: AES) plunged 8.2% on Tuesday after the Senate Finance Committee crafting the new budget bill released details of the proposal.Industry participants had held out hope that the very quick elimination of solar and wind tax credits in the House bill, passed in May, would be changed significantly. While there were some key changes in the Senate bill, it looks like wind and solar executives were hoping for more, given the reaction of the stocks today. The wind and tax credits had initially been passed in the Inflation Reduction Act passed in 2022 under the prior administration and had initially been written to last until 2032 at which point they would be phased out. However, since the new administration took office and the Republicans took both houses of Congress, the tax credits for renewable energy projects have come into the crosshairs.Continue reading
Shares of solar and wind-power producer AES Corporation (NYSE: AES) plunged 8.2% on Tuesday after the Senate Finance Committee crafting the new budget bill released details of the proposal.
Industry participants had held out hope that the very quick elimination of solar and wind tax credits in the House bill, passed in May, would be changed significantly. While there were some key changes in the Senate bill, it looks like wind and solar executives were hoping for more, given the reaction of the stocks today.
The wind and tax credits had initially been passed in the Inflation Reduction Act passed in 2022 under the prior administration and had initially been written to last until 2032 at which point they would be phased out. However, since the new administration took office and the Republicans took both houses of Congress, the tax credits for renewable energy projects have come into the crosshairs.
