The U.S. Congress has narrowly passed the “Big and Beautiful Bill,” which includes significant cuts to green subsidies originally granted under the Inflation Reduction Act (IRA)—a move expected to deal a heavy blow to the nation’s clean energy industry. The Trump-backed legislation is anticipated to be signed into law before July 4, Independence Day.
Spanning over 800 pages, the tax and spending package also includes other controversial policies, such as deep cuts to Medicaid and new funding allocations for defense and immigration enforcement. Under the new rules, the solar and wind energy sectors will bear the brunt of the changes. Both investment and production tax credits will now begin phasing out by the end of 2027, whereas the original IRA plan had set the phaseout to start no earlier than 2032.