One, big beautiful bill will revive lower oil loyalty rates and end EV tax credits
Energy Secretary Chris Wright discusses the Senate GOP disposal tax on President Donald Trump’s “big, beautiful bill” solar and wind projects to maximize US energy production to join “Varney & Co.”
president Donald Trump Last week, the Republican signed a tax cut and expenditure package to the law. This includes several key policies aimed at expanding domestic energy development.
Trump campaigned by reversing the Biden administration’s policies that he considered a constraint American Energy Development, and one big beautiful bill law (OBBBA) contains several important provisions intended to boost domestic production.
See some of the notable clauses.
The One Big Beautiful Bill Act aims to expand U.S. energy production and reduce many clean energy tax credits. (Reuters/Todd Colol/Reuters)
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Oil and gas development
The OBBBA holds regular lease sales of land and waterways under its control by the Ministry of Interior (DOI); Land Management Bureau (BLM) To hold quarterly lease sales of land available in nine western states for the next decade.
The bill reverses key energy clauses Inflation reduction methods (IRA), Biden-era laws that Democrats enacted through settlements by reviving BLM’s authority to issue non-competitive leases and providing them instead on the “first comb” basis.
It also reverses the offshore royalty rate of IRAs by recovering a pre-IRA royalty rate of 12.5% for land energy production, eliminating the IRA’s 16.67% rate, and reverting the offshore royalty rate of IRAs by recovering the previous minimum rate by 12.5%, and abolishing IRA royalty on methane extracted from coastal and offshore leases.
President Donald Trump signed one big beautiful bill law on July 4, 2025. (Getty Images/Tom Brenner of the Washington Post via Getty Images)
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Additionally, the law requires BLM to hold lease sales in the US Gulf, also known as the Gulf of Mexico. Alaska’s National Oil Reservethe coastal plains of the Arctic National Wildlife Refuge (ANWR) and the Cook Inlet in Alaska.
Strategic Oil Reserve (SPR) will be allocated $171 million to acquire petroleum products stored in SPR along with $218 million to maintain the SPR, and will be partially replenished under the bill.
Revenue from onshore oil and gas leases generates the expected revenue of $11 billion over a decade, while offshore leases add another $5 billion, while Alaska oil and gas lease another $1 billion.
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The quiet lake reflects the snowy peaks of Brooks Range, the Arctic National Wildlife Shelter (istock / istock)
Abolishing Green Tax Credit
OBBBA abolishes a variety Clean Energy A tax credit including tax credits for electric vehicles (EVs) that have been in effect more than 180 days since the bill was enacted. Additionally, related credits for EVs used 90 days after establishment will be terminated.
The tax credit for energy-efficient home improvements will end for properties placed in service 180 days after the establishment of the OBBBA, but the timeline will also eliminate the home clean energy credit.
Credits for energy-efficient commercial buildings were abolished 12 months after its establishment, and new Energy efficiency Family credit will be abolished for the home that was acquired 12 months after the bill was enacted.
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Clean hydrogen energy production, clean electricity investment, Advanced Manufacturing Green technology.
The CRFB estimates that the elimination of EVS tax credits will save $192 billion over a decade, but phasing out energy investments, production and manufacturing credits will save an additional $246 billion over that period. Repealing or reforming credits to other inflation reduction laws will save another $100 billion over a decade.