Biden Ends Subsidies for Foreign-Controlled Wind and Solar Projects?
Published Date: 7/10/2025
Presidential Document
Summary
The government is stopping taxpayer money from going to expensive and unreliable energy sources like wind and solar, especially those linked to foreign control. This change affects energy companies relying on these subsidies and aims to protect national security, save money, and support dependable American energy. Starting soon, tax credits for these green energy projects will be phased out, with strict rules kicking in within 45 days after the new law.
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Analyzed Economic Effects
5 provisions identified: 1 benefits, 3 costs, 1 mixed.
Wind & Solar Tax Credits Ended
The order directs the Secretary of the Treasury to strictly enforce termination of the clean electricity production and investment tax credits under Internal Revenue Code sections 45Y and 48E for wind and solar facilities. The Treasury must take these actions within 45 days following enactment of the One Big Beautiful Bill Act.
Foreign-Entity Restrictions Implemented
Within 45 days after enactment of the One Big Beautiful Bill Act, the Treasury must implement enhanced "Foreign Entity of Concern" restrictions from that Act. The order aims to end taxpayer support for energy sources and supply chains built in, and controlled by, foreign adversaries.
Rules to Block Eligibility Gaming
The Treasury must issue new or revised guidance within 45 days to ensure the rules about the "beginning of construction" are not circumvented for wind and solar projects. The guidance may prevent artificial acceleration of eligibility and restrict broad safe harbors unless a substantial portion of a facility has been built.
Interior to Remove Wind/Solar Preferences
The Secretary of the Interior must review regulations and policies within 45 days to find and revise any rules that give preferential treatment to wind and solar facilities compared with dispatchable energy sources. Identified preferences are to be revised as appropriate and consistent with law.
Stops Taxpayer Support for Green Subsidies
The order states the Federal Government will stop taxpayer money from going to expensive and unreliable energy sources like wind and solar, with a policy to rapidly eliminate those "green" energy subsidies. The order links this change to goals about national security, fiscal health, and reliable domestic energy.
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