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šŸŒ± Trump Pressures Senate to Slash Wind and Solar Tax Credits āš–ļøā˜€ļø

Donald Trump is pressuring Senate Republicans to adopt stricter standards that would limit tax credits for wind and solar projects. Learn how this move could reshape U.S. clean energy policy and create tension within the GOP.

Author

Green Glow
June 29, 2025

Former President Donald Trump is once again reshaping the Republican Partyā€™s energy agenda ā€” this time by directly lobbying Senate leadership to significantly limit tax credits for wind and solar projects. As Congress races to finalize a sweeping GOP megabill, Trumpā€™s behind-the-scenes push is fueling tensions within the party and threatening to upend bipartisan progress made under the Inflation Reduction Act (IRA).

Table of Contents

Direct Talks With Senate Majority Leader John Thune

According to sources familiar with the matter, Trump has held multiple private conversations with Senate Majority Leader John Thune in recent days. The focus of these talks is a specific technical provision that determines how renewable energy projects qualify for federal tax credits. Trump wants to replace the current ā€œbegin constructionā€ standard with a stricter ā€œplaced in serviceā€ requirement ā€” a move that could disqualify many clean energy projects that face grid connection delays or permitting backlogs.

This adjustment, favored by House conservatives and embedded in the House-passed reconciliation bill (H.R. 1), would dramatically accelerate the rollback of clean energy incentives passed during the Biden administration.

A Risk to Thousands of Renewable Projects

Industry leaders and renewable energy advocates warn that the proposed change could jeopardize hundreds of planned wind and solar installations across the country. Unlike the existing standard that grants credits based on project initiation, the ā€œplaced in serviceā€ criterion requires projects to be fully operational before qualifying ā€” a condition many developers find difficult to meet due to regulatory and logistical hurdles.

Such a shift, they argue, would effectively kill incentives for many projects, resulting in canceled investments, job losses, and stalled progress toward national clean energy goals.

Pushback from Senate Moderates

Not all Republicans are on board with the presidentā€™s plan. Key moderates, including Senators Lisa Murkowski (R-Alaska) and Thom Tillis (R-N.C.), have voiced strong concerns. Murkowski called the proposed language ā€œdisastrousā€ for her state, while Tillis labeled the Senate Finance Committeeā€™s more flexible approach ā€œa more rational way of doing it.ā€

Their resistance highlights a growing rift within the GOP: one faction loyal to Trumpā€™s deregulatory, fossil-fuel-driven vision, and another worried about alienating clean energy industries that provide significant economic benefits in their home states.

Trumpā€™s ā€œGreen Scamā€ Rhetoric

Trump has made his stance clear. In a Truth Social post last week, he wrote: ā€œI HATE ā€˜GREEN TAX CREDITSā€™ IN THE GREAT, BIG, BEAUTIFUL BILL.ā€ The message reflects his broader campaign to dismantle Biden-era climate initiatives, which he and his allies deride as costly and unreliable.

Energy Secretary Chris Wright and Interior Secretary Doug Burgum ā€” both Trump loyalists ā€” echoed these views, arguing that wind and solar are intermittent, subsidy-reliant technologies unfit for Americaā€™s energy dominance strategy.

The Political Calculus: Energy vs. Unity

This last-minute intervention complicates the GOPā€™s path to passing its megabill. Thune must now balance Trumpā€™s demands with the political reality in the Senate, where any significant defections from moderates could derail the bill.

The outcome could also influence the partyā€™s 2026 platform and Trumpā€™s re-election narrative, casting clean energy incentives as symbols of Democratic overreach ā€” or, alternatively, as necessary tools for job creation and innovation.

Conclusion

Voting on the megabill could begin as early as this weekend. Whether Thune incorporates the more restrictive standard remains uncertain. What is clear, however, is that Trumpā€™s influence remains potent within the GOP ā€” and that Americaā€™s clean energy future hangs in the balance.

FAQs

What is Trump proposing regarding wind and solar tax credits?

Trump is urging Senate Republicans to adopt a stricter ā€œplaced in serviceā€ standard for clean energy tax credits. This would make it harder for wind and solar projects to qualify for subsidies unless they are fully operational, rather than simply under construction.

Whatā€™s the difference between 'placed in service' and 'begin construction' standards?

The ā€œbegin constructionā€ standard allows projects to qualify for tax credits once they break ground. In contrast, the ā€œplaced in serviceā€ requirement means projects must be completed and operational, which adds delays and risks, especially in renewable energy sectors.

Why are moderates in the GOP opposed to this change?

Moderate Republicans argue the stricter standard would threaten clean energy jobs and economic development in their states by disqualifying many projects from receiving tax credits, especially those delayed by grid and permitting issues.

How would this affect the Inflation Reduction Act?

The proposed change would significantly weaken a key provision of the Inflation Reduction Act, which expanded renewable energy tax credits to help accelerate the clean energy transition.

Is this policy change final?

Not yet. Senate Majority Leader John Thune has not confirmed whether the ā€œplaced in serviceā€ language will be included in the final version of the GOP megabill. The issue remains a point of active negotiation.

What are the broader implications for clean energy in the U.S.?

If adopted, the change could slow or halt hundreds of renewable energy projects, reduce private sector investment in clean tech, and potentially increase electricity costs in regions relying on new solar or wind developments.

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