Energy Intelligence
United States: Big Beautiful Bill Cements Major Energy Policy Shift
United States: Big Beautiful Bill Cements Major Energy Policy Shift
Thu, Jul 31, 2025
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The One Big Beautiful Bil Act (OBBBA) enshrines the energy policy sea change under President Donald Trump. In this concise report, Energy Intelligence provides strategic insight into the bill’s energy sector implications. Low-carbon tax credits – like solar, wind and electric vehicles (EVs) – will be unwound more quickly or eliminated, hitting the beleaguered offshore wind and EV sectors hard. Yet, CCS tax credits were enhanced – boosting blue hydrogen – while nuclear, geothermal and sustainable aviation fuel credits were extended. In the traditional hydrocarbon space, the OBBBA mandates new leasing on federal lands, with a particular focus on Alaska and the Gulf of Mexico. It also lowers royalty rates and restores the full intangible drilling cost deduction, providing a welcome boost to the oil industry.
