The U.S. House on July 3 passed the One Big Beautiful Bill Act, ushering in a plethora of cuts to clean energy and emission reductions programs alongside measures reducing access to tax credits for solar and wind projects.

The budget reconciliation bill, which was approved by the Senate on July 1, now moves to President Donald Trump for approval ahead of a self-imposed Independence Day deadline. The bill’s 218-214 passage in the House came despite a record-setting 8-hour, 44-minute floor speech by House Minority Leader Hakeem Jeffries, who spoke against the Republican-led megabill and voiced support for clean energy.

While most of the objections to the bill concerned cuts to Medicaid and the Supplemental Nutrition Assistance Program, clean energy surfaced as Jeffries spoke about a letter written by 21 Republicans—who voted for the megabill—asking that any proposed tax code changes promote private sector investment, promote energy innovation and keep utility costs down. “The one big ugly bill represents an extraordinary and unprecedented assault on clean energy and cheaper energy in the United States of America,” Jeffries said.

The bill’s final passage drew both praise and disapproval from the energy community. Abigail Ross Hopper, president and CEO of the Solar Energy Industries Association (SEIA), called the bill’s final passage a “significant step backwards” for the economy.

“In the face of rising energy costs, global instability and growing demand for power, Congress has turned its back on the very industries that are adding the majority of the new electricity generating capacity to the grid,” Hopper said.

The legislation requires solar and wind projects to start service by the end of 2027 to access the clean electricity production and investment tax credit that were originally available until 2032.

“America is in the midst of an energy manufacturing boom, with new solar and storage factories opening across the country thanks to the forward-looking policy this law will upend,” Hopper said. “Now many of these brand new factories will be forced to shut down and lay off thousands of workers, gutting communities that were finally seeing the kind of industrial revival rural America needs and handing an untimely and strategic victory to China.”

An excise tax on solar and wind projects, however, is no longer in place after the Senate’s version of the bill scrapped it. The excise tax would’ve taxed wind and solar projects if a certain share of their components came from China and other foreign entities of concern.

The bill also repeals unobligated Inflation Reduction Act (IRA) funds, including funds in the Loan Programs Office and programs such as the Greenhouse Reduction Fund dedicated to helping oil and gas companies lower emissions.

While many see the legislation as a setback for the clean energy and emissions-reduction movement in the U.S., others saw some wins—including for hydrogen.

The clean hydrogen tax credit will expire for projects not under construction by the end of 2027, earlier than the 2033 end set in the IRA. That 2027 ending is, however, an improvement from the 2025 end that was first proposed in Trump’s bill.

Beth Deane, chief legal officer for Electric Hydrogen, said the bill is a win for the American hydrogen and energy industry.

“Extension of the runway for the 45V [hydrogen] tax credit opens the opportunity for developers, investors and manufacturers to unite in advancing a significant wave of projects that will accelerate the U.S. clean hydrogen market, sending a strong signal that the country is committed to leading the global clean energy economy,” Deane said.

Geothermal and nuclear projects now have access to some incentives if projects start construction by 2033. Plus, the oil and gas sector will have more lease sales. All three sectors are among those championed by the president.

The legislation mandates 30 offshore lease sales in the Gulf of America over 15 years, up from the three set during the administration of former President Joe Biden. It also calls for five lease sales by 2035 in the National Petroleum Reserve-Alaska.

Erik Milito, president and CEO of the National Ocean Industries Association, called the legislation a milestone for the Gulf of America.

“These provisions reestablish a dependable offshore leasing program that drives economic activity, supports critical U.S. supply chains, sustains good-paying jobs nationwide and delivers meaningful funding for conservation and coastal resilience,” Milito said. “A strong Gulf of America means a stronger economy and a more secure energy future for the entire nation.”

Milito, however, acknowledged there is still work to be done to ensure certainty in the energy industry. Offshore wind is no exception. Tax code changes have created unnecessary headwinds for not only offshore wind but also shipbuilders, ports and manufacturers, he said.

“Offshore wind is part of the solution to surging power demand and to our global competitiveness with China,” he said. “NOIA will keep working with both parties to build support for stronger tax certainty and to advance lasting, broad-based permitting reform. Tackling these issues will benefit the full breadth of the American economy.”

Energy experts have said all forms of energy will be needed to meet expected growth in electricity demand driven by data centers, a manufacturing resurgence and an electrification push.

“America’s electricity demand is projected to surge by as much as 50% by 2040. That growth requires every available source of reliable power, including the clean energy technologies that are the only shovel-ready sources of additional power and the low-cost option across much of the nation,” said American Clean Power Association CEO Jason Grumet. “Our economic and national security requires that we support all forms of American energy. It is time for the brawlers to get out of the way and let the builders get back to work.”

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