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.

U.S. solar stocks are tumbling hard on Tuesday after the Senate backed the removal of renewable energy incentives that President Donald Trump proposed in his spending bill last month. Investors are bailing on solar stocks because the upper chamber’s version of the tax-and-spending bill includes a provision to fully remove renewable energy incentives by 2028.