Trump Orders Rollback of US Tax Credits for Clean Energy Projects

In a decisive shift in US energy policy, President Donald Trump has signed an executive order directing federal agencies to enforce the phaseout of tax credits for wind and solar energy projects under the recently passed One Big Beautiful Bill Act.

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The order instructs the Treasury Department to oversee the phased elimination of tax credits for wind and solar projects. Simultaneously, the Interior Department has been tasked with reviewing and revising policies that currently favour renewable energy over conventional energy sources. Both agencies are required to submit detailed progress reports to the White House within 45 days.

The One Big Beautiful Bill Act introduces new deadlines for renewable energy projects to qualify for federal tax credits. To remain eligible, projects must begin construction before the end of 2026. Additionally, any project initiated after this date must be operational by the end of 2027. This accelerates the expiration of tax credits, which previously extended through 2032 with benefits of up to 30 per cent.

Trump Cites Reliability, Cost, and Foreign Dependence

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President Trump defended the move by highlighting concerns over the reliability and cost of renewable energy. Describing solar and wind power as expensive, unreliable, and dependent on foreign-controlled supply chains, he flagged environmental concerns related to renewable infrastructure and its potential to disrupt the stability of the electric grid.

The rollback, however, has drawn flak from clean energy advocates and industry leaders who warn that the decision could stall investment in renewable infrastructure, disrupt long-term project planning, and increase costs for developers. Many fear this will slow the momentum of America’s clean energy transition.

On the other hand, supporters of the order argue that the policy ensures fair competition across the energy sector and reduces reliance on foreign-supplied renewable components. They claim the decision strengthens American energy independence by shifting focus back to domestic fossil fuel production.

While the order does not bring the US renewable energy industry to a halt, it creates significant headwinds for solar and wind developers now forced to compete without federal incentives. The directive underscores Trump’s broader energy agenda, which prioritises fossil fuels over climate-focused energy solutions.