Congress Clears Trump-Backed Bill Slashing Clean-Energy Tax Breaks

• The “One Big Beautiful Bill” heads to President Trump’s desk after Congress voted to tighten wind and solar tax credits, setting a 2027 service deadline and sparking warnings of lost jobs and higher power prices.

The U.S. renewables sector is bracing for a sharp policy U-turn after the House of Representatives gave final approval on Thursday to the “One Big Beautiful Bill,” sending it to President Donald Trump for his signature.

Under the legislation, federal production and investment tax credits for wind and solar will now be limited to projects that either begin construction within 12 months of enactment or enter service by December 31, 2027. An eleventh-hour proposal to slap an excise tax on turbines and panels containing components from “prohibited” countries was dropped in the final draft, but industry groups say the damage is still severe.

“This is a significant step backwards for our nation’s energy economy at a time when we can least afford it,” said Abigail Ross Hopper, president of the Solar Energy Industries Association. The American Clean Power Association’s chief executive, Jason Grumet, called the bill “a dramatic swing in federal policy,” though he noted that renewables’ cost advantages and surging electricity demand should keep clean power growing.

The restrictions hit offshore wind especially hard. Developers must now break ground by mid-2026 or finish construction by end-2027 to retain Inflation Reduction Act incentives—an abrupt curtailment that, according to Oceantic Network CEO Liz Burdock, will “eventually lead to higher energy prices and fewer American jobs.”

Supporters of the bill say trimming subsidies will save taxpayers billions and reduce dependence on imported equipment. Critics counter that the move undermines U.S. climate goals, threatens domestic manufacturing investments and hands a competitive edge to fossil fuel rivals.

With Trump expected to sign the bill in the coming days, project developers face a sprint to lock in financing and break ground before the new deadlines bite. Whether that race will slow the nation’s clean-energy build-out—or simply reshuffle the pipeline—will become clear long before the law’s 2027 finish line.