A year after President Donald Trump repealed the Inflation Reduction Act, the United States has fallen short of its emissions targets. Clean energy projects have faced setbacks, yet many continue without subsidies. Experts note that market forces and other factors are keeping parts of the transition alive.
The Inflation Reduction Act, signed into law in 2022, provided tax credits for solar, wind, and electric vehicle projects. President Trump repealed most of those incentives last July through the Big Beautiful Bill. The repeal ended the law's projected path to a 50 percent emissions cut by 2035.
Studies show emissions are now expected to stay near pre-IRA levels through the decade. Dozens of solar farms and battery plants have been canceled. The electric vehicle sector has lost more than 250,000 jobs.
Some projects remain viable without subsidies. An MIT analysis found that about 75 percent of planned clean power capacity will still be built. Solar in particular has proven resilient, with more than 80 percent of large projects moving forward.
Erin Mayfield of Dartmouth said the repeal removed a foundation for long-term economic change. Bob Keefe of E2 noted that businesses lost the market certainty the credits once provided. The AI boom has created some unexpected demand for renewables despite the policy shift.
