On July 7, US President Donald Trump signed an executive order aimed at ending subsidies for wind and solar energy as part of the recently enacted “One Big Beautiful Bill” (OBBB).
According to the order, the Treasury Department is instructed to halt tax incentives for the production and investment in wind and solar energy under Sections 45Y and 48E of the Tax Code. Simultaneously, enhanced restrictions are introduced for Foreign Entities of Concern (FEOC). The Department of the Interior is required to review and amend regulations that currently provide preferential treatment to wind and solar power over fossil fuels and nuclear energy.
The order states that ending these subsidies is “a necessary step for America’s energy dominance, national security, and economic growth.” Relevant departments are required to submit reports within 45 days detailing the measures taken to implement the order.
The executive order continues the direction set by the OBBB law, which outlines a gradual phase-out of tax incentives for wind and solar energy projects. Initially, the House of Representatives proposed ending these incentives for facilities not operational by the end of 2027.
However, the move has faced sharp criticism from environmental organizations. Jason Walsh, Executive Director of the BlueGreen Alliance, stated that this decision “will hurt working Americans by cutting jobs and raising energy costs while benefiting billionaires.” According to BlueGreen, eliminating these incentives could increase household electricity bills by $400 annually over the next decade.
For the maritime industry, this policy change could significantly impact the development of offshore wind projects, vessel deployment, and supply chains for energy projects in US waters. Additionally, the tightening of FEOC restrictions may affect international maritime partnerships within the renewable energy sector.
