GOP Tax Bill Cuts Wind, Solar Credits, Raises US Energy Costs

President Donald Trump's 2025 tax legislation, known as the One Big Beautiful Bill Act, significantly modifies and phases out many of the renewable energy tax credits introduced by the Inflation Reduction Act of 2022. While the bill eliminates many incentives for solar and wind energy, some technologies such as nuclear, geothermal, battery storage, and biofuels have retained federal support due to their ability to provide continuous, dispatchable power. These changes have sparked political pushback, with Senate Republicans blocking some of Trump's Treasury nominees over concerns about constraining wind and solar projects. Analysts warn that the phase-out of tax credits for wind, solar, and electric vehicles will lead to higher household energy costs nationwide, especially in states that had planned significant clean energy deployment under Biden-era policies. The shift away from renewable incentives is expected to increase reliance on fossil fuels, driving up energy prices, particularly in red states. Overall, the clean energy market is becoming more fractured, with a new focus on resilience and dispatchable technologies amid rising financing and supply chain challenges.