Key Facts
• July 3, 2025: U.S. House of Representatives passes Trump-backed tax bill.
• Bill undermines Biden’s Inflation Reduction Act (IRA), the largest climate investment in U.S. history.
• U.S. CO2 emissions could increase by nearly 10% over the next decade, per think tank analysis.
• Tax credits for electric vehicles (EVs) end earlier; solar and wind subsidies phased out.
• Tax credits for nuclear, geothermal, hydropower, and batteries remain intact.
• Proposed tax hikes on solar and wind projects were withdrawn after Republican opposition.
• Trump expected to sign the bill into law on July 4, 2025.
• U.K. think tank Ember warns of slowed renewable energy adoption in the U.S.
• U.S. CO2 emissions projected to rise 8% by 2035, according to Climate and Energy Solutions Center.
• Environmental Protection Agency (EPA) considers easing emission regulations for power plants.
• Fossil fuel industries benefit from tax breaks and reduced costs for oil and gas extraction.
• Environmental groups criticize the bill for prioritizing tax cuts for the wealthy over climate action.
Summary
The U.S. House of Representatives passed a Trump-backed tax bill on July 3, 2025, which significantly weakens the Biden administration’s Inflation Reduction Act (IRA). The bill accelerates the end of tax credits for electric vehicles and phases out subsidies for solar and wind energy, while maintaining support for nuclear, geothermal, and hydropower. Analysts predict U.S. CO2 emissions could rise by nearly 10% over the next decade, with further increases possible due to potential regulatory rollbacks by the Environmental Protection Agency. The bill also includes incentives for fossil fuel industries, such as tax breaks for coal production and reduced costs for oil and gas extraction. Environmental groups have strongly criticized the legislation, arguing it prioritizes tax cuts for the wealthy over climate and public health. Trump is expected to sign the bill into law on July 4, 2025.
