House dismantles IRA's clean energy investments with signage of 'Big Beautiful Bill'

The House of Representatives has officially passed the One Big Beautiful Bill, which repeals most of the clean energy investment incentives introduced under former President Joe Biden's Inflation Reduction Act (IRA).

House and Senate Republicans reached consensus yesterday, allowing the Bill to pass and giving final approval to what the Administration is calling the “biggest legislative win of President Trump’s two terms.”

The IRA, hailed as the most extensive climate policy package in US history, allocated about $370 billion in tax credits to renewable energy and energy efficiency projects, much of which will now be repealed.

The Big Beautiful Bill will repeal the investment tax credit and production tax credit for solar and wind projects several years ahead of schedule, although the credits for hydrogen, carbon capture technologies and baseload power such as nuclear and geothermal will be preserved.

Have you read?
US terminates CCS and decarbonisation projects worth $3.7bn
Navigating the volatile US energy policy landscape

The new rules state that clean energy projects must be in service by 2027 or begin construction within 12 months of the bill's passing to qualify for remaining credits.

Electric vehicle makers might feel some of the worst effects as the Bill ends EV tax credits of up to $7,500 at the end of September. Previously, those tax credits were scheduled to last through 2032, providing an incentive for car buyers.

The Bill will see cuts to residential solar credits take effect sooner and confirms a new tax credit for coal used in steel making.

The Senate did remove a last-minute excise tax on wind and solar that experts warned would have negatively impacted the clean energy industry.

The American Clean Power Association (ACP) issued a statement from CEO Jason Grumet in response to the passing of the Bill: “Today’s Congressional action is 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."

The ACP believes, however, that the surging power demand in the US, coupled with the economic benefits offered by renewable energiy will be enough to keep clean power in the energy mix.

Grumet added: “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.

“Our economic and national security requires that we support all forms of American energy..."

Now that the bill has passed the House, the next step is for it to land on the president's desk to be officially signed into law. This is expected to take place on Friday 4 July.