US Senators are struggling with a harsh reality: cutting billions of dollars in clean energy subsidies that benefit their home states. The measure, championed by former President Donald Trump as the “One Big Beautiful Bill,” would rapidly phase out tax incentives contained in the 2022 Inflation Reduction Act, sparking concerns about economic damage and US leadership on climate change.
The bill would eliminate a $7,500 tax credit for electric vehicle purchases, phase out clean energy subsidies, and slow the shift to renewable energy. Analysts warn that these cuts could lead to job losses, economic instability, and even national security threats, as the US becomes increasingly reliant on foreign technologies.
“We’re in the era where we have to prioritize reliability, and reliability means nuclear, clean coal, and natural gas,” said Sen. Kevin Cramer (R-North Dakota). However, industry experts argue that these fossil fuel alternatives are plagued by delays and soaring costs, making them less reliable than renewable energy sources.
The subsidies have attracted billions of dollars’ worth of projects nationwide, with most investments flowing to red states like North Carolina. The state’s law has helped attract $23 billion in investment, creating about 20,000 new jobs. Eliminating these incentives would put these jobs at risk and undermine the US’s leadership role in combating climate change.
Climate advocates are mobilizing against the bill, warning that it threatens to cede the US’s position as a global leader on renewable energy and clean technology. “If this bill becomes law, America will effectively surrender the AI race to China and communities nationwide will face blackouts,” said Abigail Ross Hopper, president and CEO of the Solar Energy Industries Association.
The measure faces a steep challenge, with many industry groups lobbying the Senate to change course. The US Energy Information Administration has reported that over 80% of new electricity added to the power grid in 2024 came from solar panels and industrial batteries that store energy.
Source: https://www.washingtonpost.com/business/2025/05/23/senate-clean-energy-tax-credits