Ending Market Distorting Subsidies for Unreliable, Foreign-Controlled Energy Sources
The order directs the Treasury and Interior Departments to implement the phase-out of federal wind and solar energy tax credits — and to eliminate regulatory preferences for those energy sources — once the One Big Beautiful Bill Act is enacted.
Establishes a policy of ending taxpayer subsidies for renewable energy the administration characterizes as unreliable and dependent on foreign-adversary supply chains, with most operative steps contingent on that pending legislation becoming law.
What this order does
What it orders
The order directs the Secretary of the Treasury, within 45 days of the One Big Beautiful Bill Act's enactment, to issue guidance strictly enforcing the termination of clean electricity production and investment tax credits under IRC sections 45Y and 48E for wind and solar facilities. This includes preventing manipulation of "beginning of construction" eligibility rules and restricting broad safe harbors to facilities where substantial construction has actually occurred. Treasury is also directed to implement enhanced Foreign Entity of Concern restrictions from that same legislation within the same 45-day window.
The order directs the Secretary of the Interior, also within 45 days of the Act's enactment, to review and revise regulations, guidance, and policies that give preferential treatment to wind and solar over dispatchable energy sources. Both secretaries must submit a report to the President within 45 days of this order's signing date. All major implementation steps are contingent on the One Big Beautiful Bill Act becoming law; the order itself does not terminate any existing tax credit or change any current regulation.
Who it affects
Developers, investors, and project sponsors for wind and solar energy facilities currently relying on federal tax credits under IRC sections 45Y and 48E, companies with foreign-adversary ties seeking those credits, and energy producers across all fuel types subject to Interior Department permitting and regulatory oversight.
Why it matters
Wind and solar developers face tighter enforcement of tax credit eligibility and new restrictions on foreign-entity participation once the One Big Beautiful Bill Act becomes law. Projects that have relied on broad "beginning of construction" safe harbors to preserve credit eligibility may lose access to credits they had anticipated receiving.
What must happen and when
How the order is supposed to work
The order unfolds in two tracks. First, an unconditional 45-day reporting deadline requires Treasury and Interior to outline their planned actions to the President through the Assistant to the President for Economic Policy. Second, three substantive implementation steps — Treasury's credit-termination guidance, Treasury's Foreign Entity of Concern restrictions, and Interior's regulatory preference review — each activate only upon enactment of the One Big Beautiful Bill Act, with a 45-day window to act after that trigger. Interior's actual revision of any identified preferential regulations carries no fixed deadline beyond the review itself.
Actions and deadlines
- Submit report to the President on findings and planned implementation actions under this order
- Issue guidance strictly enforcing termination of IRC sections 45Y and 48E wind and solar tax credits, including 'beginning of construction' anti-manipulation rules
- Implement enhanced Foreign Entity of Concern restrictions from the One Big Beautiful Bill Act
- Review Interior Department regulations, guidance, and policies for preferential treatment of wind and solar over dispatchable energy sources
- Revise identified regulations and policies to eliminate preferential treatment for wind and solar facilities