United States' 'Big, Beautiful Bill' poised to affect millions of lives
Concerns expressed over wealth inequality, excessive border security, impact on healthcare, national debt
Revival of fossils
With the backing of the fossil fuel industry, the bill includes new tax breaks for coal and seeks to scale back or eliminate tax credits for wind and solar energy projects.
The bill also introduces several changes to clean energy tax incentives. To qualify for credits, most clean energy projects must begin construction within one year of the bill's enactment or be operational by the end of 2027. Nuclear, geothermal, and battery storage projects will still be eligible for full tax credits if construction begins before the end of 2033.
The bill will end tax credits for residential clean energy improvements, such as rooftop solar panels and electric heat pumps. It also eliminates the $7,500 tax credit for electric vehicles, terminates credits for wind power components after 2027, and disqualifies projects linked to any "foreign entity of concern" from receiving tax breaks.
Some experts have warned that investors may shift their capital to European Union countries and China, where clean energy remains a top priority. "Data center and AI companies will look overseas to find more reliable and affordable power sources, ceding the digital race to China," said the American Clean Power Association.
In addition, the bill wants to end the de minimis rule on all countries, an exemption that allows foreign countries to ship packages into the US tax-free if each package is valued under $800. On May 2, the Trump administration ended the exemption for packages coming from China, including the Hong Kong Special Administrative Region.
They are now subjected to 30 percent of duty taxes or $50 per item, taking a toll on companies like Temu and SHEIN. In the first week of May, FedEx said it saw a 35 percent drop in packages coming from Asia to the US.
Beginning in July 2027, all countries will be subject to the taxes. The International Mailers Advisory Group told The Wall Street Journal that ending the de minimis rules could lead to $40 billion in revenue, but it could cost the government more to collect the duties.
