Trump closes tax benefits for green energy: 300,000 jobs at risk!

Trump closes tax benefits for green energy: 300,000 jobs at risk!

US President Donald Trump today implemented the announced end of tax benefits for solar and wind energy projects. The Ministry of Finance has been instructed to implement the phase-out of tax credits for this industry. At the same time, the Interior Ministry should abolish guidelines that favor renewable energy. The new law, known as the “One Big Beautiful Bill Act,” was passed by Congress and signed by Trump.

The law ends renewable energy tax credits starting in 2026 unless construction of the projects has begun. Projects that begin construction after 2026 must be commissioned by the end of 2027. Under previous law, project developers could have received a 30 percent tax credit until 2032. Trump has also sought to expand oil and gas production.

Economic impact

The solar industry association SEIA warns that the new law could put almost 300,000 jobs and $220 billion in investments at risk. Particularly in Republican-leaning states, up to 300 factories could close or not open. These developments could also have an impact on energy production, particularly with regard to insufficient power supply for artificial intelligence and data centers.

The tax and spending bill, dubbed the “Big Beautiful Bill,” cleared the final hurdle in the House of Representatives, and Trump’s signing of the bill took place on July 4, 2025. The bill's main goals include extending tax cuts from Trump's first term (2017-2021) and securing additional funding for defense and border protection, including $25 billion for the Golden Dome missile defense system.

Financial implications

The law's estimated fiscal losses are $4.5 trillion. There are also plans to eliminate taxes on tips and overtime. Critics, especially from Democrats, accuse Trump of pushing through tax breaks for the rich and burdening disadvantaged citizens. A study by the Urban-Brookings Tax Policy Center shows that the richest 20 percent of Americans benefit most from the tax cuts.

The bill also calls for cuts to Medicaid and food assistance, which could cause nearly 12 million people to lose coverage over the next decade. It will also raise the debt ceiling by $5 trillion to avoid defaults, while the national debt is expected to rise by more than $3.3 trillion over the next decade. The US debt burden is currently 123 percent of GDP, which is about twice as high as in Germany.

Elon Musk has criticized the plans as potentially bankrupt and is considering founding a new “America Party.” There is also resistance within Republicans: Senator Thom Tillis and Representatives Thomas Massie and Brian K. Fitzpatrick voted against the law.

Overall, it shows that Trump's tax policy could have far-reaching consequences for the US economy and society as a whole, while the debates about justice and sustainability will certainly not stop in the coming months.

Further information on the economic impact can be found at TradingView and contribute to the political aspects ZDF today.