How the Budget Bill Could Reshape America’s Energy Future
You’ve probably seen the headlines. The so-called “One Big Beautiful Bill” is racing through Congress, and while the media focuses on extending Trump-era tax cuts, the real story is what’s getting cut to pay for them.
Clean energy tax credits, core pillars of the Inflation Reduction Act, are on the chopping block. These aren’t abstract policies. They’re the financial infrastructure behind the factories, projects, and supply chains being built across the U.S. right now.
Here’s a breakdown of what’s at stake:
1. Transferability is under threat
Transferability makes tax credits accessible to early-stage companies, particularly those that are still pre-revenue. Limiting it could freeze capital and stall project financing across climate tech.
“We just opened our first factory in West Virginia. Without the ability for transferability, this is a lot more difficult to make the project work.” - Spencer Nelson, Director of Federal Affairs at Form Energy
2. FEOC rules could break supply chains
A well-intentioned effort to block Chinese influence has resulted in language that’s vague, overreaching, and unworkable. Many companies simply won’t be able to prove their supply chains are 100% clean, even if they are.
“We need to be much, much more precise with the legislative language… otherwise uncertainty and the risk of accidentally tripping up small companies will hamper U.S. manufacturing.” - Vikrum Aiyer, Head of Climate Policy at Heirloom
3. A 60-day window would block new projects
A last-minute clause says projects must break ground within 60 days of the bill’s passage to qualify for credits.
“For wind, solar, and storage in particular, you’d have to commence construction within 60 days of enactment. It effectively means that nothing gets to benefit from the credit that isn’t already in the queue.” - Jeremy Harrell, CEO at ClearPath
That wipes out most of the current development pipeline.
4. These aren’t “climate credits”—they’re industrial strategy
IRA tax credits have already catalyzed over $50 billion in private investment and created 100,000+ jobs. Gutting them undermines American manufacturing, energy security, and competitiveness in the AI and clean tech race.
“In the end, ripping out an important tool to drive investment in new generation today actually works against President Trump’s energy dominance agenda.” - Jeremy Harrell, CEO at ClearPath
5. There’s still time to act—but the window is tight
The Senate is debating the bill now. A vote could come before July 4. If you’re a founder, investor, or engaged citizen, your voice matters. These changes are not inevitable. Check out the Inevitable podcast to learn more.
🎙️ Inevitable Podcast
📊 We have two special episodes this week in response to the news surrounding the “One Big Beautiful Bill.” First, Michael Thomas returns to break down the clean energy tax provisions. Drawing from data on over 10,000 projects, he shares what’s at stake for U.S. manufacturing and energy.
🏛️ Then we talk with Jeremy Harrell (ClearPath), Spencer Nelson (Form Energy), and Vikrum Aiyer (Heirloom) about what’s really in the bill, how it impacts the innovation economy, and what you can do before it’s too late. Listen to the full episode.
👩💻 Climate Jobs
Check out the Job Openings space in the MCJ Collective member hub or the MCJ Job Board.
Senior Manager, Solutions Delivery at Arcadia (Remote)
Security Engineer at Crusoe (San Francisco, CA)
Mechanical Engineer at Mill (San Bruno, CA)
People Operations Manager - North America at Overstory (Remote)
Manager, Business System Integration at The Nuclear Company (Columbia, SC)
Operations Associate at Paces (Brooklyn, NY)
Director of Strategic Partnerships at Runwise (Remote)
Installer Sales Representative at SPAN (San Francisco, CA)
🗓️ Mark Your Calendar
⚡️ Sometimes Boring, Always Important - What Investors and Founders Should Know About US Electricity Regulation: Join us for a tactical session designed by Greg Geller for early-stage climate tech founders and investors navigating utility-facing business models. Greg is the former Head of Regulatory Affairs at Enel North America and has been in the space for 20 years. He now runs Stack Energy which is a regulatory affairs consultancy. We’ll cover how U.S. regulation works and the commercial implications for your business. (Tuesday, June 24)
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