By Jess LeDonne
On the first day of his second term, President Donald Trump signed an executive order titled “Unleashing American Energy.” This executive order was intended to reduce regulatory requirements within the energy industry and promote oil, gas, and other fossil fuel production. More specifically, the executive order pauses all disbursements under the Inflation Reduction Act and the Infrastructure Investment and Jobs Act. During the 90-day pause, agencies are instructed to review their processes, policies, and programs to ensure that financial disbursements of appropriated funds align with the administration’s overall energy goals.
The “Unleashing American Energy” executive order also abolishes the White House Office on Clean Energy Innovation and Implementation that former President Joe Biden established in 2022 to coordinate the policymaking process with respect to implementing the energy and infrastructure provisions of the Act and other essential initiatives. The dissolution of this office may signal a shift away from government-led clean energy initiatives, leaving private-sector investments to play a more dominant role in advancing renewable energy projects.
President Trump also signed the “Regulatory Freeze Pending Review” executive order on the first day of his second term. This order suspends the development of new regulations and prevents the publication of any pending, but not yet finalized, regulations until they are reviewed by a White House appointee for compliance with the new administration’s energy policy.
These recent executive orders have left many wondering how clean energy tax credits and electric vehicle (EV) charging infrastructure will be affected.
Clean energy tax credits
The “Unleashing American Energy” executive order speaks only to the disbursement of grant funding and does not directly address tax credits. Generally, congressional action is required to revoke tax legislation. As a result, the new clean energy tax credits established under IRC sections 30C, 45Z, and 48 seem to be unaffected for the time being. Similarly, any transferable tax credits established under IRC Section 6418 do not seem to be directly impacted.
Unfortunately, the “Unleashing American Energy” executive order does state that, “All agencies shall immediately pause the disbursement of funds appropriated through the Inflation Reduction Act of 2022 or the Infrastructure Investment and Jobs Act.” As a result, Direct Pay rules codified under IRC Section 6417 and appropriated in Public Law 117-169 would seem to be subject to the pause on disbursement. For tax exempt entities with Direct Pay projects, this will likely impact the timing of any direct payments that have been previously claimed but not yet received.
Electric vehicle charging infrastructure
The “Unleashing American Energy” executive order also seems to directly impact the disbursement of funds through the National Electric Vehicle Infrastructure (NEVI) Formula Program and the Charging and Fueling Infrastructure Discretionary Grant Program (CFIDGP). Both of these programs funded the deployment of EV charging infrastructure. The impacts on the manufacturing and installation of EV charging stations remain to be seen, but there will certainly be disruptions and delays at a minimum.
The current legislative and regulatory landscape is complex and ever-changing. President Trump’s “Unleashing American Energy” and “Regulatory Freeze Pending Review” executive orders demonstrate a significant departure from the prior administration’s energy policy. The regulation and funding pauses may signal a broader elimination of incentives for clean energy and electric vehicles in the future.
For now, businesses should focus on staying up to date on key legislation as the new administration’s energy policy begins to take shape. For further guidance or to understand how these executive orders may impact your organization, consider reaching out to a trusted advisor.
ABOUT THE AUTHOR:
As director of tax technical at The Bonadio Group, Jess LeDonne serves as a key resource on tax legislation, technical guidance, and policy developments that impact clients’ businesses. Jess oversees the firm’s specialized tax technical teams, ensuring they deliver innovative, consistent, and practical solutions. She closely monitors the evolving legislative and regulatory landscape to provide clients with clear, actionable insights that drive informed decision-making. Since beginning her career in 2012, Jess has developed a deep expertise in tax, compliance, and policy consulting, ensuring that the firm and its clients stay ahead of the curve. Jess also leads thought leadership initiatives, including webinars, articles, and presentations, and spearheads tax technical education programs for both internal teams and clients, fostering excellence across all practice areas. Jess loves spending her free time outside with her husband, two children, and dog, Gipper. If she is not golfing or reading, you may find her out on Conesus Lake or cheering on the Fighting Irish.
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