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 version of the bill includes a provision that would fully phase out both solar and wind power tax incentives by 2028. It does, however, keep incentives for nuclear, hydropower and geothermal energy for longer.

Also at risk is the viability of the Mid-Atlantic Clean Hydrogen Hub, the Philadelphia-area project announced by Biden in 2023 that aims to use hydrogen fuel to power industrial processes and other things, said Frank Wolak, CEO of Fuel Cell & Hydrogen Energy Association.