Vestas’ shares experienced a significant drop on the Copenhagen stock exchange Thursday morning, plummeting by approximately five percent. This decline follows a report from Bloomberg, as cited by MarketWire, indicating that US tax rebates for green energy investments may be phased out sooner than initially anticipated, based on a new bill.

The current plan allows companies constructing renewable energy plants to receive tax benefits until 2032. However, the latest draft of the bill reportedly proposes terminating deductions under the Inflation Reduction Act (IRA) as early as 2029.

James Lucier, Managing Director of Capital Alpha Partners, characterized this potential change as “a hard shutdown of the IRA,” according to Bloomberg via MarketWire. The IRA, enacted under President Biden, aims to stimulate American green energy production.

The scheme provides tax benefits to companies involved in wind energy development, prompting Vestas to invest a substantial sum in its Colorado factories in anticipation of increased American orders. While Vestas has already benefited from the IRA and secured numerous American orders for the coming years, the future outlook in the US market appears less promising.

Ørsted is also feeling the impact of this news from the USA, with its shares falling by just over three percent this morning.