U.S. President Donald Trump has issued a new executive order targeting renewable energy incentives, directing federal agencies to enforce cuts to tax credits for wind and solar projects. The move is part of the recently passed One Big Beautiful Bill Act, which alters the federal government’s support for green energy.
In the order signed Monday, Trump called wind and solar power “unreliable, expensive,” and “dependent on foreign-controlled supply chains,” arguing that these energy sources displace more dependable options and harm both the natural environment and electric grid stability.
The Treasury Department has been instructed to phase out renewable energy tax credits more aggressively, in line with the budget bill Trump signed last week. The Department of the Interior is also ordered to revise policies that prioritize renewables over conventional energy sources like oil, gas, and coal.
Under the new law, renewable energy projects must begin construction before the end of 2026 to qualify for any federal tax credit. Those projects must also be fully operational by the end of 2027. Previously, developers could claim a 30% investment tax credit for solar and wind projects through 2032.
Both the Treasury and Interior Departments are required to submit progress reports to the White House within 45 days.
The directive marks a sharp reversal in U.S. clean energy policy, potentially stalling investment in wind and solar infrastructure and shifting focus toward traditional energy sectors. Industry leaders warn the change could disrupt long-term planning and increase costs for green energy developers. Meanwhile, supporters argue it levels the playing field for American energy independence by reducing reliance on foreign-supplied renewable components.
The executive order reflects Trump’s broader energy agenda to prioritize fossil fuels and domestic production while scaling back climate-focused subsidies.