WASHINGTON DC (7/3/25) – The U.S. House of Representatives gave final passage to H.R.1, the One Big Beautiful Bill Act, today. This legislation now heads to the President’s desk for his signature.
Significant provisions of the bill include:
- Permanently extends the Tax Cuts and Jobs Act
- Repeals the electric vehicle tax credit
- Places significant restrictions on the energy subsidies embedded in the Inflation Reduction Act
- Rescinds unobligated Inflation Reduction Act funds
- Repeals the Greenhouse Gas Reduction Fund
- Pauses the IRA natural gas tax for a decade
- Requires the Bureau of Land Management to hold quarterly leases
- Reduces royalty rates to pre-Inflation Reduction Act levels
American Energy Alliance President Tom Pyle released the following statement:
“We commend Congress for passing this legislation and look forward to President Trump’s signature. With this bill’s passage, Congress is delivering much-needed tax relief to millions of working families and goes a long way towards putting an end to the misguided Biden-era IRA, which has made our energy more expensive and less reliable.
“Eliminating the EV tax credit marks a major win for those of us who have been advocating for years that consumer choice—not government mandates—should shape the American auto market. Congress deserves praise for ending these subsidies, which were largely out of step with the priorities of the American people. The measure also creates new opportunities for energy production on federal lands and stops the flow of federal dollars to green special interest groups.
“And while the bill fell short of fully repealing the IRA, it does end solar and wind subsidies after a 2027 ‘placed in service’ cutoff. Unfortunately, the bill includes a loophole as projects committing 5% of costs within 12 months qualify as ‘under construction’ and get a 4-year extension. This enables projects started by July 2026 to receive subsidies through July 2030, and many lasting an additional 10 years. The Trump administration should limit this by tightening Treasury rules—shortening the safe harbor and requiring continuous construction, not just initial construction–to ensure the solar and wind lobby don’t continue to game the system at taxpayer expense.”
AEA Experts Available For Interview On This Topic:
- Tom J. Pyle, President
- Kenny Stein, Vice President of Policy
- Alex Stevens, Manager of Policy and Communications
Additional Background Resources From AEA:
- Senate’s Version of Big Beautiful Bill Vastly Improved, Needs Some Clarity
- House Passes “Big, Beautiful” Budget Bill to Dismantle Costly Green Subsidies
- House’s Tax Bill is a Win for Energy Abundance; Now it’s the Senate’s Turn
- Energy Provisions in House-Passed Tax Bill
For media inquiries please contact:
THOMAS.PYLE@ENERGYDC.ORG