In Short : The U.S. Senate passed the “One Big Beautiful Bill,” sparking backlash for cutting key clean energy subsidies. While a proposed excise tax on wind and solar was dropped, the bill phases out renewable and EV tax credits by 2027–28. Critics warn of job losses, stalled climate goals, and rising energy costs, threatening momentum in America’s clean energy transition.
In Detail : The U.S. Senate has passed the “One Big Beautiful Bill,” a sweeping budget package that has stirred widespread controversy over its provisions targeting clean energy. Pushed through with Vice President J.D. Vance’s tie-breaking vote, the legislation reflects a major policy shift by Senate Republicans aiming to reshape the nation’s energy and fiscal priorities.
Although the bill initially proposed an excise tax on wind and solar energy, that measure was ultimately removed. However, the final version still delivers a serious blow to the clean energy sector by phasing out tax credits for renewable energy and electric vehicles starting in 2027 and 2028.
These tax credits, introduced under earlier climate legislation, have been crucial in encouraging investment in wind, solar, and EV technologies. Their planned removal is expected to slow project development, reduce competitiveness, and increase the cost of clean energy alternatives for consumers.
Industry leaders, environmental groups, and clean tech advocates have condemned the bill, warning of job losses and economic disruption in one of the fastest-growing sectors. They argue the rollback undermines U.S. climate commitments and risks ceding technological leadership to other countries investing heavily in green infrastructure.
Opponents also point out that the cuts come at a time when demand for renewable energy is rising, especially in energy-intensive sectors like AI and data centers. The uncertainty created by the bill could delay projects and drive up energy prices, affecting both households and businesses.
The Biden administration and several state governors have vowed to push back against the legislation’s impact, seeking alternative pathways to support clean energy. Meanwhile, legal challenges and renewed public debate are expected as the country navigates the political divide over energy policy and climate action.
