The US House of Representatives has passed the bill 218-214, a tax-cut legislation representing a reversal on green power projects. Among the main changes introduced by the Big Beautiful Bill is the cut of a 30% tax credit for solar and wind power projects that had been set to run until 2032, and which developers had relied on. These cuts are expected to represent a fall of about 300 GW.
Battery storage (BESS) projects will also retain the full tax credit through 2033 and phase out fully by 2036, while tax credits for hydrogen and CCS have been preserved by the bill. The legislation also mandates sales of oil and gas drilling rights in federal lands and in waters off Alaska and the Gulf of Mexico. The bill reduces royalty rates that coal companies have to pay when mining on public lands and includes a 2.5% production tax break on coal used in steel making.
Under previous administrations, the US aimed to have a fully decarbonized power generation system by 2035.
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