Vestas shares took a hit on the Copenhagen Stock Exchange on Thursday morning, falling by approximately five percent. This comes after Bloomberg, according to MarketWire, reported that the US rules for tax rebates for investments in green energy will be phased out earlier than expected according to a new bill.
So far, the proposal has been that the tax benefits that companies could obtain in connection with the construction of renewable energy plants should expire in 2032.
However, the new draft of the bill reportedly states that deductions under the so-called Inflation Reduction Act (IRA) should stop as early as 2029.
- This probably corresponds to a hard shutdown of the IRA, estimates James Lucier, CEO of the research group Capital Alpha Partners, to Bloomberg, according to MarketWire.
The IRA was adopted under President Biden and was a scheme that was supposed to kickstart the American production of green energy. The scheme offers tax benefits to companies that build wind energy, among other things, and that is why Vestas decided to invest a three-digit million dollar amount in its factories in Colorado in the expectation of receiving more American orders.
And even though Vestas has already felt the positive effect of the scheme and has many American orders on the books for the coming years, the future does not look as bright on the American market as it has.
Ørsted is also affected by the news from the US. The share falls by a good three percent since this morning.
/ritzau/MarketWire
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