President Donald Trump has instructed the Treasury Department to sharply curtail federal tax credits for wind and solar projects as part of the budget law he signed this month, reversing incentives expanded under the previous administration. The measure accelerates the sunset date for most production and investment credits to the end of 2027 and blocks projects from claiming the benefits if they rely on key components sourced from China or other “foreign entities of concern.” Congressional analysts say the changes will reduce federal spending by about $499 billion between 2025 and 2034. The rollback is already rippling through the nation’s largest clean-power market. An analysis of federal data by Atlas Public Policy shows 11 large solar developments and one onshore wind project in California now face potential delays or cancellation. The Solar Energy Industries Association warned the new deadlines could jeopardize as many as 35,700 jobs and 25 in-state manufacturing facilities. Energy Secretary Chris Wright defended the policy shift, arguing renewable subsidies have made electricity more expensive and that the administration’s strategy is centred on “energy addition, not subtraction,” with a greater role for gas, coal and nuclear power. California officials counter that the federal move threatens the state’s plan to run its grid entirely on carbon-free sources by 2045 and could drive up future electricity rates. While wind and solar face tighter rules, the law leaves tax incentives for nuclear, hydroelectric, geothermal and battery storage intact. Projects that start construction within a year, or enter service by the new 2027 deadline, may still qualify, but developers say the compressed schedule raises financing and supply-chain risks.