Clean energy stocks slump as Trump looks to tighten access to tax credits from just-passed bill

Clean energy stocks are an extremely messy story.

The likes of First Solar and Enphase Energy got clobbered in mid-June after it looked like both chambers of Congress agreed on phasing out tax credits that benefit the industry, along with a separate excise tax on renewable projects that sourced a certain amount of materials from select foreign countries (like China). Then, they staged a substantial relief rally as the final version of the bill scrapped that excise tax while also leaving a window open for developers to start projects (with a four-year window to finish them) and still qualify for tax credits.

Both stocks are down about 5% this morning as President Donald Trump aims to make sure the concessions in the bill he just signed into law don’t give away too much to the clean energy industry and potentially allow developers to game the tax credits.

Here’s the relevant portion of the executive order (emphasis added):

“Within 45 days following enactment of the One Big Beautiful Bill Act, the Secretary of the Treasury shall take all action as the Secretary of the Treasury deems necessary and appropriate to strictly enforce the termination of the clean electricity production and investment tax credits under sections 45Y and 48E of the Internal Revenue Code for wind and solar facilities. This includes issuing new and revised guidance as the Secretary of the Treasury deems appropriate and consistent with applicable law to ensure that policies concerning the ‘beginning of construction’ are not circumvented, including by preventing the artificial acceleration or manipulation of eligibility and by restricting the use of broad safe harbors unless a substantial portion of a subject facility has been built.”