Trump’s Sweeping Tax Law Slashes Green Incentives and Repeals $20 Billion Climate Bank

President Donald Trump signed the “One Big Beautiful Bill” into law on 4 July after Republicans pushed the nearly 900-page package through both chambers of Congress. The measure makes roughly $4.5 trillion of individual and business tax cuts permanent while steering new money to defence and immigration enforcement, the Congressional Budget Office estimates. To help finance the plan, it pares back spending on Medicaid, food assistance and several climate programmes. The legislation dismantles large parts of the 2022 Inflation Reduction Act’s clean-energy architecture. A federal tax credit of up to $7,500 for electric-vehicle purchases now expires on 30 September, while production and investment incentives for wind and solar generation are limited to facilities that begin operating before the end of 2027. At the same time, the bill widens tax breaks for metallurgical coal and keeps incentives for some nuclear, hydropower and carbon-capture projects, reflecting the administration’s renewed emphasis on fossil fuels. Congress also scrapped the $20 billion Greenhouse Gas Reduction Fund, known as the green bank, created to finance climate-friendly projects. In a filing with a federal appeals court, the Environmental Protection Agency said the repeal should allow it to freeze remaining funds and void contracts that groups such as Climate United Fund secured last year. The nonprofits argue most of the money is already obligated, setting up a legal clash over whether the government can claw back the grants. Renewable developers and manufacturers that ramped up U.S. factory construction on the strength of earlier incentives now face an uncertain outlook. Analysts warn the loss of subsidies could slow the growth of electric-vehicle sales and stall thousands of megawatts of planned wind and solar capacity, clouding the country’s near-term clean-energy transition.