Washington, D.C. — The Trump administration is ending eligibility for many new wind and solar projects to claim federal tax credits unless developers began construction before a July 4 deadline.
The deadline comes from the Working Families Tax Cuts law, also known as the One Big Beautiful Bill Act, which accelerated the phaseout of clean-energy tax credits. The Department of Energy praised the cutoff, with Energy Secretary Chris Wright arguing that wind and solar add costs because they require backup power, transmission expansion, and large land areas.
The Congressional Budget Office estimated before the rollback that the investment and production tax credits for wind and solar would increase federal deficits by $308 billion from 2026 through 2035. Supporters of the phaseout say the credits distort energy markets and shift costs to taxpayers.
Renewable energy groups argue the cutoff will slow projects, increase uncertainty, and make it harder to meet rising electricity demand. SEIA reported that solar developers moved quickly to qualify projects before the deadline, while Reuters reported that federal permitting delays are already threatening billions of dollars in wind, solar, and storage investment.
The fight reflects a larger split over whether federal energy policy should prioritize lower taxpayer costs or faster clean-energy deployment.
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