A sweeping Republican initiative to roll back clean energy incentives could deliver a devastating blow to the U.S. economy and environment, experts warn. The new tax bill, recently passed by the GOP-controlled House of Representatives, threatens to eliminate over 830,000 jobs, increase household energy costs, and release hundreds of millions of tons of additional planet-warming pollution.
The legislation would dismantle critical climate provisions signed into law by President Biden, which have driven record investments in renewable energy and electric vehicles across the country. Among the cuts are tax credits for electric vehicles, which would end this year, and incentives for wind, solar, and nuclear energy projects, which would be scaled back before being eliminated entirely by 2032. Tax credits for clean energy manufacturing would disappear by 2031, and subsidies for Americans upgrading to energy-efficient appliances would cease by year’s end.
“This bill is worse than anyone expected,” said Robbie Orvis, senior director at the non-partisan think tank Energy Innovation. “It strips away vital support for clean energy, raises household costs by hundreds of dollars, and cripples our ability to respond to the climate crisis. The timing couldn’t be worse—especially with inflation, rising electricity demand, and geopolitical uncertainty.”In addition to reversing progress on clean energy, the bill continues a pattern of environmental rollbacks seen under the Trump administration, which previously cut energy efficiency programs and climate-focused funding.
“This legislation puts polluters ahead of people,” Orvis added.
By 2035, the bill is projected to cause an additional 260 million metric tons of carbon emissions—more than the entire annual output of Spain. Although U.S. emissions would still decline overall, experts stress the pace is far too slow to avoid the worst consequences of climate change, including increasingly frequent and severe heatwaves, wildfires, droughts, and floods.
“This is a turning point,” Orvis said.And unless it’s reversed, it may set America back by decades in the fight against climate change.