U.S. President Donald Trump has signed a new executive order aimed at ending tax benefits for wind and solar energy. The directive enforces stricter implementation of provisions under the recently passed One Big Beautiful Bill Act, which rolls back renewable energy tax credits.
Trump criticized renewable energy sources, calling them unreliable, costly, and harmful to the U.S. power grid. He also noted concerns over foreign dependence for materials used in wind and solar production.
Tax Incentives to End After 2026
The new law removes key federal tax incentives for renewable projects that fail to begin construction by the end of 2026. Projects that do start by then must be operational by December 2027 to remain eligible.
Previously, developers could claim a 30% federal investment tax credit (ITC) for solar projects through 2032. That incentive now ends much sooner. Wind projects will face similar cuts in tax support, effectively shifting the financial landscape for clean energy nationwide.
According to the order, the Treasury Department will oversee enforcement of the revised credit schedule. The Department of the Interior is also instructed to examine and revise any existing policies that promote renewables over traditional energy.
Both agencies must submit detailed reports to the White House within 45 days.
Shift in Energy Priorities
The Trump administration has repeatedly argued for energy independence rooted in traditional resources such as oil, gas, and nuclear. Supporters say this executive order is a step toward restoring balance and fairness in energy policy.
Critics, however, warn that the move could hurt the renewable industry and stall clean energy progress. Some environmental groups argue that rolling back incentives will slow job growth and delay emissions reductions.
But for many in energy-rich states like Arizona, the change aligns with long-standing concerns about grid reliability and overregulation in the energy market.
The full text of the executive order is available at whitehouse.gov.
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