Sponsors (23)
Introduced July 23, 2025 by Ilhan Omar · Last progress July 23, 2025
The bill significantly reduces federal and international support for fossil fuels — improving environmental protections, fiscal transparency, and some revenue streams — but does so at the cost of higher near‑term economic pain for fossil‑industry workers, potential increases in consumer energy prices, greater financing/compliance burdens, and slower permitting for projects.
Millions of Americans benefit from a substantial rollback of federal support for fossil-fuel production and international financing of fossil projects, which should reduce long‑term emissions and reduce taxpayer funding of oil, gas, and coal projects.
Clean‑hydrogen producers and developers gain clearer, more predictable tax treatment — a defined per‑unit credit and an expanded list of qualifying renewable resources (wind, solar, geothermal, marine, hydropower) — making project revenue forecasting easier.
Households and communities gain stronger environmental review and preserved air-protection measures because NEPA's core environmental‑impact requirements are restored and certain rollbacks to Clean Air Act protections are reversed.
Workers, contractors, and local economies tied to oil, gas, coal, carbon capture, and related industries face substantial job, income, and local‑economic losses as federal grants, loans, research support, tax benefits, and other industry supports are curtailed or eliminated.
Millions of consumers and households risk higher fuel and energy costs because production and import taxes, repeal of subsidies, and higher operating costs for producers are likely to be passed through to prices at the pump and on utility bills.
Businesses and the IRS will face added complexity and higher administrative/compliance costs from numerous industry‑specific tax changes, accounting‑method shifts, reporting requirements, and evaluations of laws that subsidize fossil production.
Based on analysis of 11 sections of legislative text.
Ends many federal supports and tax benefits for fossil‑fuel production, rescinds funds and authorities, revises environmental review rules, and requires Treasury reporting on fossil subsidies.
Ends many federal supports for fossil‑fuel production and use, removes or rescinds related agency authorities and funding, and cancels a broad set of tax benefits that apply to fossil‑fuel activities. It also changes environmental-review rules, increases certain pollution liability for diluted bitumen, requires Treasury reports on fossil‑fuel subsidies, and narrows or terminates several clean‑fuel tax credits and programs. The law targets royalty relief, direct and indirect federal financing for oil, gas, and coal projects, Department of Energy fossil‑fuel program authority, and multiple Internal Revenue Code provisions that currently provide tax advantages to fossil‑fuel producers. It phases many changes to apply after enactment or for taxable years after enactment, and it requires new Treasury/IRS reporting and disclosures about beneficiaries of certain credits.