One Big Mess?

Newsweek analyzes the reconciliation bill's impact on cleantech and renewable energy sources, and what this means for jobs and the environment

- JEFF YOUNG

TARGETED The OBBBA rapidly phases out most tax credits for renewable energy sources, while promoting fossil fuels such as coal, oil and gas.

WHEN PRESIDENT DONALD TRUMP SIGNED THE "One Big Beautiful Bill" Act, or OBBBA, into law earlier this month, he delivered on his pledge to end many forms of federal support for clean energy-or, as Trump calls it, the "green new scam." The OBBBA rapidly phases out most tax credits for renewable energy deployment and the manufacturing of clean energy equipment, batteries and electric vehicles while promoting fossil fuels.

Most independent analyses of the bill's energy impact forecast the loss of billions of dollars of planned investments. Research firm Rhodium Group previously identified $522 billion worth of announced clean energy investments linked to the tax credits that are yet to come online-and could now be at risk. Trade groups for the cleantech sector warned that Congress was pulling the plug on jobs.

Jason Grumet, CEO of American Clean Power Association, or ACP, said in a statement that Congress was "disrupting the good faith investments of American companies that are powering our economy and creating hundreds of thousands of jobs." Solar Energy Industries Association CEO Abigail Ross Hopper called the bill "a significant step backwards for our nation's energy economy at a time when we can least afford it." A few final-hour changes in the Senate eased the pain a bit, slightly extending the timeline for some companies to claim credits, but clean energy largely lost despite a vigorous campaign by companies in the sector and climate action groups.

The Fallout