On July 4, the bill popularly known as the “One Big Beautiful Bill Act” was signed into law by President Trump, effectively repealing the majority of the clean energy investment incentives introduced under former President Joe Biden’s Inflation Reduction Act (IRA).

The IRA allocated about $370 billion in tax credits to renewable energy and energy efficiency projects. These included the investment tax credit and production tax credit for solar and wind projects several years ahead of schedule, and EV tax credits of up to $7,500 which were previously scheduled to last through 2032.

In June, the Department of Energy cancelled CCS and decarbonisation projects worth $3.7bn. According to an article published in Power Engineering International quoting Bloomberg, these included “$331 million allocated to Exxon Mobil for a hydrogen project at its Baytown, Texas refinery; $170 million to Kraft Heinz for several clean energy developments; $500 million to Heidelberg Materials for a low-carbon cement project; $375 million to Eastman Chemical for its molecular recycling facility in Longview, Texas; and $270 million to Calpine subsidiaries for carbon capture projects in Baytown, Texas, and near Yuba City, California.”

In a statement on the passage of the bill, Jason Grumet, CEO of the American Clean Power Association said it represented “…a dramatic swing in federal policy, disrupting the good faith investments of American companies that are powering our economy and creating hundreds of thousands of jobs. The legislation restricts energy production, raises prices for American businesses and families, and challenges the reliability of our existing electric grid.”

He added that while the new policies “are a step backward, the combination of surging demand for electric power and economic benefits of renewable energy technologies ensure that clean power will continue to play a significant and growing role in our nation’s energy mix.”

According to Mr Grumet, “America’s electricity demand is projected to surge by as much as 50% by 2040. That growth requires every available source of reliable power, including the clean energy technologies that are the only shovel-ready sources of additional power and the low-cost option across much of the nation.”

See also Princeton University Impacts of the One Big Beautiful Bill On The US Energy Transition – Summary Report

Further reading.