Don't Mess With Taxes

Credit: Unsplash+ in collaboration with Diana Light

The Senate is in the midst of its marathon to pass its version of the One Big Beautiful Bill (OBBB) full of tax and other Trump administration domestic policies.

The so-called vote-a-rama is expected to go into Monday (June 30) night on the 940-page bill, with Senators trying to revise or remove various provisions that could negatively affect their individual and business constituents, also known as voters.

One area that bears close watching by both those voting blocs of particular are the clean energy tax breaks in the Biden Administration’s Inflation Reduction Act.

So far, all versions of the OBBB have included cuts to the prior legislation’s environmentally friendly provisions.

Here’s a quick overview of how they would be affected. For now.

Business alt energy tax breaks imperiled: One area that has shifted traditional Republican positions is the OBBB’s move to eliminate as soon as possible the environmental tax breaks in the

When the anti-energy tax provisions made it into the House bill, there was hope that Senators would take a different approach.

No such luck for supporters the green energy options. In fact, in some instances the Senate version is tougher.

It includes, for now, a tax on wind and solar projects using a certain percentage of components from China after 2027. The move shocked energy companies that though they had a deal with Congress for a longer time frame in which to build the green facilities.

One of the upset business owners is Donald Trump’s former political ally, apparent friend, and creator of Department of Government Efficiency (DOGE). Elon Musk took to his social media account to denounce the bill as “severely damaging industries of the future.”

Electric autos take a hit, too: Tesla CEO Musk obviously includes his electric vehicle (EV) company as one of those industries of the future.

That industry will take a hit since the clean energy tax breaks for drivers looking to lower their carbon tire tracks will face an even more rapidly approaching deadline.

The Senate bill sets Sept. 30 as the deadline by which you’d have to drive your EV, either a new or used one, off the lot. Yes, in just three months.

So, if you’ve been thinking of buying an EV, you better think fast.

My post from last November, Want an EV? Buy before Trump eliminates the tax credit, has details on the applicable for now EV tax break.

Also stayed tuned to your favorite news sources (like the ol’ blog, right?) for updates on the OBBB’s progress.

Once it clears the Senate, the House must again okay the measure before it can head to the Oval Office for final enactment.

As we’ve already seen, none of us can get too comfortable about what’s in the One Big Beautiful Bill and exactly when the many, many provisions will take effect until the presidential signature is affixed.

You also might find these items of interest:

• GOP transportation bill calls for federal EV, hybrid fees
• Axing Energy Star could end consumer savings (and some state sales tax holidays)
• Green energy tax credits, including solar options, on the GOP tax bill chopping block

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