Key Points
- Nuclear power gets a boost as a Senate panel proposes extending tax credits for nuclear power until 2036.
- The same plan would completely phase out tax credits for the solar industry by 2028.
- Stocks for nuclear companies like Oklo and NuScale Power rose sharply on the news. In contrast, stocks for solar companies fell significantly.
- The proposal indicates a clear policy shift under the Trump administration, favoring nuclear energy over solar energy.
Nuclear energy stocks had a great day on Tuesday, with companies like Oklo, Nano Nuclear, and NuScale Power all jumping between 3% and 5%. The rally came after a Senate panel proposed major changes to President Trump’s budget that would be a huge win for the industry. The plan would extend valuable tax credits for nuclear, hydro, and geothermal power to 2036.
But it was a terrible day for solar energy companies. Their stocks dropped sharply because the same Senate proposal plans to phase out their tax credits completely by 2028. This move signals a major shift in government support, clearly favoring one type of clean energy over another.
The good news for nuclear power isn’t happening in a vacuum. It builds on recent momentum from President Trump, who has issued executive orders aimed at supporting the industry. Together, these actions are creating a much friendlier and more profitable environment for nuclear companies.
This proposed budget change is a huge deal for the entire energy sector. It demonstrates how rapidly government policy can transform the industry, creating clear winners and losers. Investors reacted immediately, selling off solar stocks and buying into nuclear, betting on where the government’s support and money will be in the years ahead.
