What Happened?
Shares of home energy technology company Enphase (NASDAQ:ENPH) fell 18.8% in the afternoon session after a GOP bill was passed to end some of the tax benefits granted to clean energy companies during the Biden administration.
The "tax and spending bill", which narrowly passed the House of Representatives, targeted major elements of the Inflation Reduction Act, aiming to significantly reduce or eliminate tax credits for wind, solar, and electric vehicles years earlier than planned. The immediate concern is the potential for reduced financial incentives that have spurred investment and growth in the renewable energy sector.
The prospect of an accelerated phase-out of these crucial tax credits was likely affecting investor confidence, leading to a sell-off in solar companies.
The shares closed the day at $38.01, down 19.6% from previous close.
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