Big Beautiful Bill Cuts Wind, Solar Incentives

The newly enacted Big Beautiful Bill imposes statutory fees and significantly restricts federal tax credits and incentives for wind and solar projects on federal lands. New projects must begin construction by mid-2026 and be operational by the end of 2027, a timeline expected to increase electricity rates and potentially slow the growth of clean energy. The bill also terminates the residential solar tax credit by December 2025, shortening its original lifespan under the Biden administration and prompting a rush among homeowners to install solar before the incentive expires. A briefly proposed tax on wind and solar projects using materials from China was removed following industry and bipartisan political backlash. States such as Connecticut are redoubling efforts to reach zero-emission goals through investments in nuclear, offshore wind, and solar, even as federal support wanes. The shifting policies have introduced uncertainty for the renewable sector, sparking concerns about market stability and the pace of clean energy adoption.