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6h ago

Trump Signs Budget Law Curtailing Clean Energy Incentives and Orders Tougher Tax Credit Rules

A budget law ending most wind and solar tax credits now pairs executive orders imposing tougher construction deadlines with curbs on renewable project permits

A wind farm is shown in Movave, California, U.S., November 8, 2019. REUTERS/Mike Blake/ File Photo
U.S. President Donald Trump holds up his signed spending and tax cut legislation surrounded by members of Congress, at the White House, in Washington, July 4, 2025 (AP photo by Julia Demaree Nikhinson).
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Overview

  • The budget law phases out Inflation Reduction Act incentives by ending wind and solar tax credits for projects that don’t start construction within a year or begin producing electricity by 2028.
  • Trump’s executive order directs the Treasury Department to restrict “broad safe harbors,” aiming to prevent developers from claiming renewable credits without substantial construction.
  • The Interior Department is ordered to eliminate any federal policies that grant preferential treatment to wind and solar projects on public lands and federal waters.
  • The legislation mandates auctions for oil and gas leases on federal land, lowers fees for fossil fuel operators and offers extra tax breaks to oil, gas and coal producers while delaying a methane leak fee.
  • In exchange for key votes, Trump reportedly pledged executive actions to block solar and wind permits after Senate Republicans rejected harder taxes on renewables.