Solar energy stocks dropped sharply on Tuesday as the market digested cuts to renewable power tax credits in the Senate's version of the budget bill.

The Senate Finance Committee’s language would take a sledgehammer to some parts of the renewable-friendly Inflation Reduction Act while sparing others.

The US Senate has proposed a complete phase-out of tax credits for solar and wind energy, as part of amendments to Donald Trump's proposed "One Big Beautiful Bill Act." However, as renewable energy industry insiders point out,