Trump’s executive orders don’t impact clean energy tax incentives

President Trump’s second term has introduced uncertainty into the clean energy landscape, particularly regarding tax incentives and regulatory frameworks.

While his Unleashing American Energy executive order calls for an immediate pause on clean energy-related federal disbursements, a subsequent memo has clarified that it does not impact energy incentive tax credits, a key distinction for businesses planning clean energy investments.

The executive order specifically targets funding under the Inflation Reduction Act (IRA) and the Infrastructure Investment and Jobs Act (IIJA), with a particular focus on electric vehicle charging station investments. Programs affected include the National Electric Vehicle Infrastructure Formula Program and the Charging and Fueling Infrastructure Discretionary Grant Program.

While existing tax credits remain intact for now, future actions — whether through Acts of Congress or U.S. Treasury guidance — could impact their implementation. Given the slim margins in Congress and the scale of existing energy incentives, major legislative changes appear unlikely. Additionally, while the U.S. Treasury has the authority to interpret and administer tax laws, it cannot unilaterally revoke or modify statutory tax credits.

These factors, along with legal questions about the constitutionality of retroactively revoking tax credits, appear to safeguard key IRA incentives for the time being.

Broader policy shifts and business impact

The administration’s broader energy agenda, highlighted by the declaration of a national energy emergency, emphasizes domestic production and infrastructure development. Notably, the emergency declaration excludes wind, solar and hydrogen from its definition of energy resources, signaling a potential shift in federal energy priorities.

Despite this uncertainty, the administration’s “America First” approach to domestic manufacturing could create opportunities. Companies that have invested in U.S.-based production to maximize IRA incentives may still be well-positioned, as these priorities align with the IRA’s domestic content requirements — albeit for different underlying reasons.

What’s next?

As these policies unfold, businesses should prepare for several developments:

• The Treasury Department will likely review and potentially modify existing guidance on clean energy tax credits. Companies should stay alert for new interpretations affecting credit calculations and eligibility requirements.
• State-level policies, particularly regarding generation plants and carbon emission targets, will remain important despite federal changes. Companies operating across multiple jurisdictions should prepare for potentially divergent state and federal requirements.
• Infrastructure companies should watch for new opportunities in traditional energy projects while maintaining flexibility in their clean energy portfolios, particularly given varying state requirements.
• Taxpayers should source domestic content for their project to maximize energy credits.

How Wipfli can help

At Wipfli, we understand the complexity of deciphering tax credit and broader regulatory landscape changes. Our tax and energy professionals can help you evaluate investment strategies, maximize available incentives and adapt to regulatory changes as they unfold. Visit our energy credits page to learn more, and for continuous updates on administration policies impacting the tax and energy sector, follow our policy updates page.