Core Points - The "Big and Beautiful" tax reform bill proposed by the Trump administration is set to phase out tax incentives and subsidies for the U.S. clean energy industry by the end of 2027, which could have devastating effects on sectors like solar energy and electric vehicles [1][2][4] - The U.S. solar manufacturing sector, which had begun to recover due to previous government support, is now facing potential factory closures and job losses as a result of this legislation [2][5] - The bill's passage could lead to a significant loss of market share to China, which currently dominates over 70% of global solar panel production and is also a leader in electric vehicle battery technology [4][8] Solar Energy Industry - The "Big and Beautiful" bill will gradually eliminate tax credits for solar and wind projects, with additional incentives ending by the end of 2027 [5][6] - The American Solar Manufacturers Alliance warns that the cancellation of these incentives will undermine efforts to reclaim manufacturing from China, potentially leading to widespread business failures and job losses [2][5] - The solar industry had previously seen a revival due to the Inflation Reduction Act, which provided substantial tax credits [5][6] Electric Vehicle Industry - The bill proposes to eliminate the $7,500 tax credit for electric vehicle buyers and withdraw subsidies for battery plants and lithium mining companies [9][10] - The U.S. automotive industry is concerned that the reduction of incentives will hinder its competitiveness in the electric vehicle market, where China currently produces 70% of the world's electric vehicles [8][9] - American automakers are facing challenges in maintaining market share as consumers increasingly turn to more affordable electric vehicles from Chinese manufacturers [8][10] Political and Economic Implications - The legislation has sparked a political battle, with some Republican officials advocating for the retention of tax incentives that have helped create jobs in their communities [6][10] - The potential decline in the clean energy sector could have broader implications for U.S. economic competitiveness and national security, as reliance on foreign production increases [6][10] - Experts emphasize the need for the U.S. to strengthen its electric vehicle manufacturing capabilities to remain relevant in the global market [10][12]