What's the OBB got to do with me?

The “One Big Beautiful Bill” signed into law July 4, 2025 is a 1000+ page massive bill that has extensive changes to both US Tax and Energy Policies within it. While as always, certain items will shake out and be clarified over time, the main industry relevant takeaways that jump out at first glance are listed below.

The OBB essentially reverses or phases out almost every climate and energy related item passed in the 2022 Inflation Reduction Act (refresher on the major items from that bill here: Inflation Reduction Act - Relevant Industry Item Snapshot ). Items being reversed or phased out include credit and funding for EV, solar, and wind production. On the consumer level this includes the clean vehicle credit, home energy efficiency credits, including credits for solar installations.

On a national level, the OBB mandates new leases for oil and gas, and unlinks them from renewable energy leases/production enacted in the IRA (offshore wind and offshore drilling leases were linked in the prior bill), retires the credits for solar and wind farm creation, and expands access to coal mining. The hydrogen tax credit expires, and the credit for carbon capture is expanded to reflect the higher actual cost of the process for producers.

In addition to the Energy specific policy changes, the OBB contains substantial changes to tax policy, including business related taxes. Specifically, the pass through deduction is now permanent, bonus depreciation extended to 100%, business interest deduction moves to an EBITDA standard, and changes charitable contribution rules, among other items. Personal tax rates are impacted as well, with most provisions serving to lock in and/or expand changes made in the Tax Cuts and Jobs Act in 2017. Most notably, increased standard deductions, increased child tax credits, and no tax on tips and overtime.

All of the above obviously can be anticipated to impact supply and pricing over time in the broader energy and transportation markets. The establishment of a firmly pro oil and gas position by the Administration can be expected to have large impacts on renewables as well, and locally we will have to stay tuned on the fate of items like Clean Heat Standards, Advanced Truck Rules (and other California spawned off emissions programs), as well as ongoing wind projects in New England.

Stay Tuned!